Unregulated Hong Kong Stablecoins Emerge Amid Official Absence

The central banking authority of Hong Kong has cautioned that fraudulent stablecoins are capitalizing on the city's forthcoming stablecoin regulations, even before the introduction of the first licensed stablecoin product. According to a statement by the Hong Kong Monetary Authority, certain tokens bearing the 'HKDAP' and 'HSBC' labels are being traded, although they have no affiliation with any authorized issuer. This was corroborated by licensed stablecoin applicants mentioned in related media reports, who confirmed that no regulated stablecoins have been issued. Earlier this month, the HKMA granted its inaugural stablecoin licenses under the Stablecoins Ordinance, which became effective in August 2025. Two groups were selected from a total of 36 applicants, mirroring the existing monetary framework of Hong Kong, where a limited number of commercial banks are authorized to issue banknotes. The HKMA has warned the public to be cautious of deceitful activities, advising them to rely solely on official communications from licensed entities and to conduct transactions only through regulated channels. Industry insiders anticipate the launch of licensed stablecoins to coincide with Hong Kong's fintech week in November.