Counterfeit Stablecoins Emerge in Hong Kong Amid Regulatory Vacuum

Hong Kong's financial regulator has sounded the alarm over the emergence of fake stablecoins, which are capitalizing on the territory's forthcoming stablecoin framework before any legitimate products have been launched. The Hong Kong Monetary Authority (HKMA) has confirmed that tokens labeled ‘HKDAP’ and ‘HSBC’ are being traded, despite having no affiliation with authorized issuers. This development comes after the HKMA recently awarded its inaugural stablecoin licenses under the Stablecoins Ordinance, which became effective in August 2025, selecting two applicants out of 36. The chosen entities, which include a consortium led by Standard Chartered and HSBC, reflect Hong Kong's existing banking system, where a limited number of commercial banks are authorized to issue banknotes. The HKMA has cautioned the public to be wary of fraudulent schemes, advising them to only rely on official communications from licensed issuers and to conduct transactions through regulated channels. Industry insiders anticipate the launch of legitimate stablecoins to coincide with Hong Kong's fintech week in November.