Counterfeit Stablecoins Emerge in Hong Kong Amid Regulatory Vacuum

Hong Kong's financial regulator has cautioned that fake stablecoins are taking advantage of the impending regulatory framework, even before the introduction of the first officially licensed product. The Hong Kong Monetary Authority stated that tokens with the 'HKDAP' and 'HSBC' labels are being traded, but are not affiliated with any approved issuer. The two applicants for stablecoin licenses referenced in the media have confirmed that they have not released any regulated stablecoins. Earlier this month, the HKMA granted its inaugural stablecoin licenses under the Stablecoins Ordinance, which came into effect in August 2025, selecting two groups out of 36 applicants. The selection of HSBC and a Standard Chartered-led entity mirrors the existing monetary system in Hong Kong, where a limited number of commercial banks are authorized to issue banknotes. 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 legitimate stablecoins is expected to take place during Hong Kong's fintech week in November.