Unregulated Hong Kong Stablecoins Emerge Amid Official Absence

The central banking authority of Hong Kong has issued a warning about the presence of counterfeit stablecoins that are taking advantage of the upcoming regulatory framework for stablecoins in the city, even before the launch of the first officially licensed product. According to a statement from the Hong Kong Monetary Authority, tokens bearing the ‘HKDAP’ and ‘HSBC’ labels are being traded, but they are not associated with any approved issuer. The statement also confirmed that the licensed applicants mentioned in related media releases have not released any regulated stablecoins. Earlier this month, the HKMA granted its first licenses for stablecoins under the Stablecoins Ordinance, which became effective in August 2025, selecting two groups out of 36 applicants. The selection of HSBC and an entity led by Standard Chartered mirrors the existing monetary system in Hong Kong, where a limited number of commercial banks are authorized to issue banknotes. The HKMA cautioned the public to be aware of potential scams and advised them to only rely on official announcements from licensed issuers and to conduct transactions through authorized channels. Industry insiders predict that the official launch will take place during Hong Kong's fintech week in November.