Unauthorized Hong Kong Stablecoins Emerge Amid Regulatory Vacuum

Hong Kong's financial regulator has issued a warning about fake stablecoins that are taking advantage of the city's new stablecoin framework, even before the launch of the first officially licensed product. The Hong Kong Monetary Authority stated that tokens bearing the 'HKDAP' and 'HSBC' labels are being traded, but are not linked to any authorized issuer. The two entities that have been granted stablecoin licenses, as mentioned in related media reports, have confirmed that they have not released any regulated stablecoins. This development comes after the HKMA awarded its first stablecoin licenses under the Stablecoins Ordinance, which became effective in August 2025, selecting two applicants out of 36. The choice of these licensees reflects Hong Kong's existing banking system, where a limited number of banks are authorized to issue currency notes. The HKMA has advised the public to be cautious of fraudulent activities and to only rely on official communications from licensed entities, 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.