Unauthorized Hong Kong Stablecoins Emerge Amid Regulatory Vacuum

A warning has been issued by Hong Kong's central banking authority regarding the presence of fake stablecoins, which are taking advantage of the impending stablecoin regulations before any officially licensed products have been released. According to a statement from the Hong Kong Monetary Authority, tokens bearing the 'HKDAP' and 'HSBC' labels are currently in circulation but lack any connection to authorized issuers. The statement also confirmed that two licensed stablecoin applicants, referenced in related media reports, have not issued any regulated stablecoins. Earlier this month, the HKMA granted its first set of stablecoin licenses under the newly introduced Stablecoins Ordinance, effective August 2025, selecting two groups out of 36 applicants. The selection of HSBC and a Standard Chartered-led entity mirrors the existing monetary framework in Hong Kong, where a limited number of commercial banks are authorized to issue banknotes. The HKMA has cautioned the public to exercise vigilance against fraudulent activities, advising them to rely solely on official communications from licensed entities and to conduct transactions through regulated channels. Industry insiders anticipate the launch of licensed stablecoins to coincide with Hong Kong's fintech week in November.