Counterfeit Stablecoins Emerge in Hong Kong Amid Regulatory Vacuum

Hong Kong's financial regulator has sounded the alarm over fake stablecoins that are already being traded, even before the launch of the first officially licensed products. The Hong Kong Monetary Authority (HKMA) revealed that tokens labeled 'HKDAP' and 'HSBC' are being circulated, but these have no legitimate connection to any authorized issuer. This comes after the HKMA recently awarded its inaugural stablecoin licenses to two applicants, following the introduction of the Stablecoins Ordinance in August 2025. The regulator cautioned the public to be cautious of fraudulent activities and to only engage with official channels and communications from licensed entities. Industry insiders anticipate the official launch of licensed stablecoins to coincide with Hong Kong's fintech week in November.