Unregulated Hong Kong Stablecoins Emerge Amid Official Absence

Hong Kong's financial regulator has cautioned that fraudulent stablecoins are taking advantage of the city's new stablecoin framework, even before the introduction of the first officially licensed products. The Hong Kong Monetary Authority (HKMA) revealed that tokens bearing the ‘HKDAP’ and ‘HSBC’ labels are being traded, although they are not associated with any approved issuer. Both entities mentioned as licensed stablecoin applicants in related media releases have confirmed that they have not released any regulated stablecoins. This development comes after the HKMA awarded its inaugural stablecoin licenses under the Stablecoins Ordinance, which became effective in August 2025, selecting two applicants out of 36. The choice reflects Hong Kong's existing banking system, where a limited number of commercial banks are authorized to issue banknotes. The HKMA advised the public to be cautious of scams and to only rely on official communications from licensed entities, as well as to conduct transactions through regulated platforms. According to insiders, the launch of licensed stablecoins is anticipated to take place during Hong Kong's fintech week in November.