Unsanctioned Hong Kong Stablecoins Emerge Amid Regulatory Vacuum

Hong Kong's financial regulator has issued a warning about the presence of fake stablecoins in the market, which are masquerading as legitimate, even before the official launch of any licensed stablecoin products. According to the Hong Kong Monetary Authority, certain tokens labeled 'HKDAP' and 'HSBC' are being traded, but they have no affiliation with any authorized entities. This development comes after the HKMA recently awarded its inaugural stablecoin licenses under the newly enacted Stablecoins Ordinance, which became effective in August 2025. The recipients of these licenses were chosen from a pool of 36 applicants, with the selection of HSBC and a consortium led by Standard Chartered mirroring the existing structure of Hong Kong's banking system, where a select few commercial banks are empowered to issue banknotes. The HKMA is cautioning the public to be aware of potential scams and advising them to only rely on official announcements from licensed issuers and to conduct transactions through regulated platforms. Industry insiders anticipate the official launch of these licensed stablecoins to coincide with Hong Kong's fintech week in November.