Unofficial Hong Kong Stablecoins Emerge Amid Regulatory Vacuum

Hong Kong's financial regulator has sounded the alarm over fake stablecoins masquerading as legitimate ones, even before the launch of the first officially sanctioned products. According to the Hong Kong Monetary Authority, certain tokens labeled 'HKDAP' and 'HSBC' are being traded, but are not affiliated with any authorized issuers. The companies associated with these labels have denied issuing any compliant stablecoins, the HKMA stated. This development comes on the heels of the HKMA's decision to award its inaugural stablecoin licenses under the newly enacted Stablecoins Ordinance, which became effective in August 2025. The selection of two applicants from a pool of 36 mirrors the existing banking system in Hong Kong, where a handful of commercial banks are empowered to issue currency. The regulatory body has cautioned the public to be wary of deceitful schemes, advising them to verify information through official channels and conduct transactions only via regulated platforms. Industry insiders anticipate the official launch of licensed stablecoins to coincide with Hong Kong's fintech week in November.