Unregulated Hong Kong Stablecoins Emerge Amid Official Licensing Delay

Hong Kong's financial regulator has cautioned that fake stablecoins are taking advantage of the upcoming regulatory framework, even before the launch of the first officially sanctioned product. The Hong Kong Monetary Authority (HKMA) revealed that tokens labeled 'HKDAP' and 'HSBC' are being traded, but are not affiliated with any authorized issuer. The two licensed stablecoin applicants mentioned in related media reports have confirmed that they have not released any regulated stablecoins. Earlier this month, the HKMA awarded its first stablecoin licenses under the new Stablecoins Ordinance, which came into effect in August 2025, selecting two groups out of 36 applicants. The selection of HSBC and a Standard Chartered-led entity reflects Hong Kong's existing banking system, where a limited number of commercial banks are authorized to issue banknotes. The HKMA warned the public to be cautious of fraudulent activities, advising them to only rely on official communications from licensed issuers and to conduct transactions through regulated channels. According to insiders, the official launch is expected to take place during Hong Kong's fintech week in November.