Unregulated Hong Kong Stablecoins Emerge Amid Official Absence

Hong Kong's financial regulator has cautioned that fake stablecoins are taking advantage of the impending stablecoin framework, even before the introduction of the first officially licensed product. The Hong Kong Monetary Authority (HKMA) stated that tokens bearing the 'HKDAP' and 'HSBC' labels are circulating, but are not connected to any authorized issuer. The two licensed applicants mentioned in related news reports have confirmed that they have not released any regulated stablecoins. Earlier this month, the HKMA awarded its first stablecoin licenses under the new Stablecoins Ordinance, which became effective in August 2025, selecting two groups out of 36 applicants. The selection of these groups mirrors the existing banking system in Hong Kong, where a limited number of commercial banks are authorized to issue currency notes. The HKMA has warned the public to be cautious of fraudulent activities, advising them to only rely on official communications from licensed issuers and 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.