Counterfeit Stablecoins Emerge in Hong Kong Ahead of Licensed Launches

Hong Kong's financial regulator has cautioned that fraudulent stablecoins are already taking advantage of the city's new stablecoin framework, even before the launch of the first authorized products. The Hong Kong Monetary Authority (HKMA) stated that tokens labeled ‘HKDAP’ and ‘HSBC’ are being traded, despite having no link to any approved issuer. According to the HKMA, both stablecoin applicants mentioned in related news releases confirmed that they have not issued any regulated stablecoins. Earlier this month, the HKMA awarded its inaugural stablecoin licenses under the newly effective Stablecoins Ordinance, selecting two applicants out of 36. The choice reflects Hong Kong's existing banking system, where a limited number of commercial banks are authorized to issue banknotes. The HKMA advised the public to be cautious of scams and to only rely on official communications from licensed issuers, conducting transactions through regulated channels. Industry insiders anticipate the launch of licensed stablecoins during Hong Kong's fintech week in November.