Unregulated Hong Kong Stablecoins Emerge Amid Official Absence

The central banking authority of Hong Kong has issued a warning about the presence of counterfeit digital tokens that are taking advantage of the upcoming stablecoin framework, even before the introduction of the first officially licensed product. According to a statement from the Hong Kong Monetary Authority, tokens bearing the ‘HKDAP’ and ‘HSBC’ labels are being traded, but they have no affiliation with any authorized issuer. The statement also confirmed that the licensed applicants referenced in related media reports have not released any regulated stablecoins. Earlier this month, the HKMA awarded its inaugural stablecoin licenses under the newly enacted Stablecoins Ordinance, which became effective in August 2025. Out of 36 applicants, two groups were selected, mirroring the existing monetary system in Hong Kong where a limited number of commercial banks are authorized to issue banknotes. The HKMA cautioned the public to be cautious of fraudulent activities, advising them to only rely on official communications from licensed entities and to conduct transactions through authorized channels. Industry insiders anticipate the official launch to take place during Hong Kong's fintech week in November.