Unregulated Hong Kong Stablecoins Emerge Amid Official Absence

Hong Kong's financial regulator has cautioned that fake stablecoins are taking advantage of the city's new stablecoin framework, even before the introduction of the first officially licensed product. The Hong Kong Monetary Authority stated that tokens bearing the 'HKDAP' and 'HSBC' labels are being traded, but are not associated with any approved issuer. The two entities that have applied for stablecoin licenses and were mentioned in related media reports have confirmed that they have not issued any regulated stablecoins. Earlier this month, the HKMA awarded its first stablecoin licenses under the Stablecoins Ordinance, which came into effect in August 2025, selecting two applicants out of 36. The selection of HSBC and a consortium led by Standard Chartered reflects 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, advising them to only rely on official communications from licensed entities and to conduct transactions through regulated channels. According to insiders, the launch of licensed stablecoins is expected to take place during Hong Kong's fintech week in November.