Counterfeit Stablecoins Emerge in Hong Kong Ahead of Licensed Launch

The central banking authority of Hong Kong has issued a warning regarding the emergence of fake stablecoins, which are taking advantage of the upcoming regulatory framework for stablecoins in the city, even before the introduction of the first authorized product. According to a statement from the Hong Kong Monetary Authority, certain tokens bearing the 'HKDAP' and 'HSBC' tickers are being traded, but they are not affiliated with any licensed issuer. The statement also confirmed that the two applicants for stablecoin licenses mentioned in related media reports have not issued any regulated stablecoins. Earlier this month, the HKMA granted its inaugural stablecoin licenses under the newly enacted Stablecoins Ordinance, which became effective in August 2025. The selection of two groups from a total of 36 applicants mirrors the existing monetary system in Hong Kong, where a limited number of commercial banks are authorized to issue banknotes. The HKMA has advised the public to exercise caution against fraudulent activities, recommending that users rely solely on official communications from licensed entities and conduct transactions through regulated channels. Industry insiders anticipate the launch of licensed stablecoins to occur during Hong Kong's fintech week in November.