Unlicensed Hong Kong Stablecoins Emerge Amid Regulatory Vacuum

Hong Kong's financial regulator has cautioned that fake stablecoins are taking advantage of the city'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 HKMA has warned the public to be cautious of scams, advising them to only trust official communications from licensed entities and to use regulated platforms for transactions. Earlier, the HKMA awarded its inaugural stablecoin licenses under the Stablecoins Ordinance, which came into effect in August 2025, selecting two applicants from a pool of 36. Industry insiders anticipate the launch of legitimate stablecoins during Hong Kong's fintech week in November.