Unregulated Hong Kong Stablecoins Emerge Amid Official Absence

Hong Kong's financial regulator has cautioned that fake stablecoins are taking advantage of the city's upcoming stablecoin framework, even before the introduction of a single authorized product. The Hong Kong Monetary Authority stated that tokens bearing the ‘HKDAP’ and ‘HSBC’ labels are circulating, but are not associated with any licensed issuer. The two applicants for stablecoin licenses mentioned in related media reports have confirmed that they have not released any regulated stablecoins. Earlier this month, the HKMA granted its first stablecoin licenses under the newly implemented Stablecoins Ordinance, selecting two groups out of 36 applicants. The choice reflects 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 fraudulent activities and to only rely on official communications from licensed issuers, as well as to conduct transactions through regulated channels. According to insiders, the launch of licensed stablecoins is expected to take place during Hong Kong's fintech week in November.