Unregulated Hong Kong Stablecoins Emerge Amid Official Absence

The central banking authority of Hong Kong has cautioned that fraudulent tokens are taking advantage of the impending stablecoin framework in the city, even before the launch of a single officially sanctioned product. According to a statement from the Hong Kong Monetary Authority, tokens labeled 'HKDAP' and 'HSBC' are being traded, but are not affiliated with any authorized issuer. The two licensed applicants for stablecoins referenced in related media reports have confirmed that they have not released any regulated stablecoins. Earlier this month, the HKMA granted its inaugural 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 consortium led by Standard Chartered mirrors Hong Kong's existing monetary framework, where a limited number of commercial banks are authorized to issue banknotes. The HKMA has advised the public to be cautious of deceitful activities, recommending that users rely solely on official communications from licensees and conduct transactions through regulated channels. Industry insiders anticipate a launch during Hong Kong's fintech week in November.