Unauthentic Hong Kong Stablecoins Emerge Amid Regulatory Vacuum

Hong Kong's financial regulator has cautioned that fraudulent stablecoins are already taking advantage of the territory's new stablecoin framework, even before the launch of the first authorized products. The Hong Kong Monetary Authority (HKMA) revealed that tokens labeled 'HKDAP' and 'HSBC' are being traded, but are not affiliated with any licensed issuers. The two applicants for stablecoin licenses mentioned in related media reports have confirmed that they have not issued any regulated stablecoins. Earlier this month, the HKMA awarded its inaugural stablecoin licenses under the Stablecoins Ordinance, which came into effect in August 2025, selecting two groups out of 36 applicants. The choice of these groups mirrors Hong Kong's existing banking system, where a limited number of commercial banks are authorized to issue banknotes. The HKMA has warned the public to be cautious of scams and advised users to only rely on official announcements from licensed issuers and to conduct transactions through regulated platforms. According to insiders, the launch of authorized stablecoins is expected to take place during Hong Kong's fintech week in November.