Unauthorized Stablecoins Appear in Hong Kong Market Amid Regulatory Vacuum

Hong Kong's financial regulator has sounded the alarm over fake stablecoins that are capitalizing on the city's forthcoming stablecoin framework, even before the launch of a single authorized product. The Hong Kong Monetary Authority (HKMA) has issued a warning that tokens labeled 'HKDAP' and 'HSBC' are being traded, although they have no affiliation with any licensed issuer. Both applicants for stablecoin licenses referenced in related media reports have confirmed that they have not released any regulated stablecoins. This development comes after the HKMA awarded its inaugural stablecoin licenses under the Stablecoins Ordinance, which came into effect in August 2025, selecting two groups from a pool 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 banknotes. The HKMA has cautioned the public to be cautious of fraudulent activities, advising them to only rely on official communications from licensed issuers and to conduct transactions through authorized channels. Industry insiders anticipate the launch of licensed stablecoins to coincide with Hong Kong's fintech week in November.