UnAuthorized Hong Kong Stablecoins Appear on Market Before Official Launch

Counterfeit stablecoins are emerging in Hong Kong, taking advantage of the upcoming regulatory framework before any officially licensed products have been released. The Hong Kong Monetary Authority (HKMA) has issued a warning, stating that tokens bearing the ‘HKDAP’ and ‘HSBC’ tickers are being traded without any connection to authorized issuers. This development comes after the HKMA recently granted its first stablecoin licenses under the newly effective Stablecoins Ordinance, selecting two applicants out of 36. The chosen applicants mirror the existing banking system in Hong Kong, where a limited number of commercial banks are authorized to issue banknotes. The HKMA has cautioned the public to be aware of potential scams, advising them to only trust official communications from licensed entities and to conduct transactions through regulated channels. According to insiders, the official launch of licensed stablecoins is expected to take place during Hong Kong's fintech week in November.