Unauthorized Hong Kong Stablecoins Emerge Amid Regulatory Vacuum

The central banking authority of Hong Kong has cautioned that fraudulent stablecoins are taking advantage of the city's newly introduced stablecoin framework, even before the launch of a single licensed stablecoin. According to the Hong Kong Monetary Authority, certain tokens labeled 'HKDAP' and 'HSBC' are being traded, but they are not affiliated with any authorized issuers. The HKMA also stated that the licensed applicants mentioned in related media reports have confirmed that they have not released any regulated stablecoins. Earlier this month, the HKMA granted its first stablecoin licenses under the Stablecoins Ordinance, which became effective in August 2025, selecting two groups out of 36 applicants. This move mirrors Hong Kong's existing banking system, where a limited number of commercial banks are authorized to issue banknotes. The HKMA has warned the public to be cautious of fraudulent activities and advised users to only rely on official communications from licensed issuers and to conduct transactions through regulated channels. Industry insiders anticipate that the launch will take place during Hong Kong's fintech week in November.