Unofficial Hong Kong Stablecoins Emerge Amid Regulatory Vacuum

The central banking authority of Hong Kong has cautioned that fake digital tokens are taking advantage of the upcoming stablecoin framework in the city, even before the launch of a single licensed stablecoin product. According to a statement released by the Hong Kong Monetary Authority, certain tokens bearing the 'HKDAP' and 'HSBC' labels are currently in circulation but are not affiliated with any authorized issuer. The statement also mentioned that two licensed applicants for stablecoins, referenced in related media reports, have confirmed that they have not issued any regulated stablecoins. Earlier this month, the HKMA awarded its first stablecoin licenses under the newly enacted Stablecoins Ordinance, which became effective in August 2025, selecting two groups out of 36 applicants. The selection of HSBC and an entity led by Standard Chartered mirrors the existing monetary system in Hong Kong, where a limited number of commercial banks are authorized to issue banknotes. The HKMA has advised the public to exercise caution against fraudulent activities and to only rely on official communications from licensed entities, as well as to conduct transactions through regulated channels. Industry insiders anticipate that the official launch will take place during Hong Kong's fintech week in November.