Unregulated Hong Kong Stablecoins Emerge Amid Licensing Delay

Hong Kong's financial regulator has issued a warning about the presence of fake stablecoins in the market, exploiting the city's new regulatory framework before any licensed products have been launched. The Hong Kong Monetary Authority stated that tokens with 'HKDAP' and 'HSBC' labels are being traded, but are not affiliated with any authorized issuers. This comes after the HKMA recently awarded its first 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 cautioned the public to be aware of potential scams, advising them to only rely on official communications from licensed issuers and to conduct transactions through regulated channels. Industry insiders anticipate the launch of licensed stablecoins to take place during Hong Kong's fintech week in November.