Unregulated Hong Kong Stablecoins Emerge Amid Licensing Delay

The central banking authority of Hong Kong has cautioned that fraudulent stablecoins are taking advantage of the city's new stablecoin regulations before any officially licensed products have been released. According to the Hong Kong Monetary Authority, tokens bearing the 'HKDAP' and 'HSBC' tickers are in circulation but are not affiliated with any authorized issuers. The two entities that have applied for stablecoin licenses and were mentioned in related press releases have confirmed that they have not issued any regulated stablecoins. Earlier this month, the HKMA granted its first stablecoin licenses under the newly implemented Stablecoins Ordinance, selecting two applicants out of 36. The selection of these entities mirrors the existing banking 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 and to only rely on official communications from licensed entities, as well as to conduct transactions through regulated channels. Industry insiders anticipate that the launch will take place during Hong Kong's fintech week in November.