Unauthorized Hong Kong Stablecoins Emerge Amid Regulatory Vacuum

Hong Kong's financial regulator has sounded the alarm over the emergence of fake stablecoins, which are capitalizing on the territory's upcoming stablecoin framework before any legitimate products have been launched. The Hong Kong Monetary Authority (HKMA) has identified tokens labeled ‘HKDAP’ and ‘HSBC’ that are being traded, but emphasized they are not affiliated with any approved issuers. This development comes after the HKMA recently awarded its inaugural stablecoin licenses under the Stablecoins Ordinance, which became effective in August 2025, selecting two applicants out of 36. The chosen entities, which include a consortium 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 currency notes. The HKMA has cautioned the public to be aware of potential scams, advising them to only rely on official announcements from licensed issuers and conduct transactions through authorized channels. Industry insiders anticipate the official launch of licensed stablecoins to coincide with Hong Kong's fintech week in November.