Counterfeit Stablecoins Emerge in Hong Kong Amid Regulatory Vacuum

Hong Kong's financial regulator has cautioned that bogus stablecoins are capitalizing on the city's forthcoming stablecoin framework, even before the introduction of a single authorized product. The Hong Kong Monetary Authority (HKMA) issued a statement revealing that tokens labeled 'HKDAP' and 'HSBC' are being traded, but are not affiliated with any licensed issuer. This development comes after the HKMA granted its inaugural stablecoin licenses under the Stablecoins Ordinance, which became effective in August 2025, selecting two applicants from a pool of 36. The chosen entities, which include a group led by Standard Chartered and another involving HSBC, reflect Hong Kong's existing banking system, where a limited number of commercial banks are authorized to issue banknotes. The HKMA has advised the public to exercise caution against fraudulent activities, recommending that users rely solely on official communications from licensed issuers and conduct transactions through regulated platforms. Industry insiders anticipate the launch of licensed stablecoins to coincide with Hong Kong's fintech week in November.