Unofficial Hong Kong Stablecoins Emerge Amid Regulatory Vacuum

Hong Kong's financial regulator has cautioned that fake stablecoins are taking advantage of the city's upcoming stablecoin framework, even before the introduction of a single authorized product. The Hong Kong Monetary Authority stated that tokens with the 'HKDAP' and 'HSBC' labels are being traded, but are not affiliated with any licensed issuer. The two applicants for stablecoin licenses mentioned in related media reports have confirmed that they have not released any regulated stablecoins. Earlier this month, the HKMA granted its first stablecoin licenses under the new Stablecoins Ordinance, which came into effect in August 2025, selecting two groups out of 36 applicants. The choice of these groups reflects Hong Kong's existing banking system, where a limited number of commercial banks are authorized to issue banknotes. The HKMA warned the public to be cautious of fraudulent activities and advised them to only rely on official communications from licensed issuers and to conduct transactions through regulated channels. Industry insiders anticipate the launch of authorized stablecoins during Hong Kong's fintech week in November.