Unregulated Hong Kong Stablecoins Emerge Amid Official Absence

Hong Kong's financial regulator has cautioned that fraudulent stablecoins are taking advantage of the city's upcoming stablecoin framework, even before the introduction of the first officially licensed product. The Hong Kong Monetary Authority stated that tokens labeled ‘HKDAP’ and ‘HSBC’ are being traded, but are not linked to any approved issuer. The two licensed stablecoin applicants mentioned in related media releases confirmed that they have not released any regulated stablecoins. Earlier this month, the HKMA awarded its first stablecoin licenses under the Stablecoins Ordinance, which came into effect in August 2025, selecting two groups out of 36 applicants. The selection of HSBC and a Standard Chartered-led entity reflects Hong Kong's current monetary system, where a limited number of commercial banks are authorized to issue banknotes. The HKMA advised the public to be cautious of fraudulent activities, recommending that users rely solely on official communications from licensed issuers and conduct transactions through regulated channels. Industry insiders anticipate a launch during Hong Kong's fintech week in November.