Unregulated Hong Kong Stablecoins Emerge Amid Official Absence

The Hong Kong Monetary Authority has cautioned that fraudulent stablecoins are taking advantage of the city’s forthcoming regulatory framework, even before the introduction of the first officially licensed stablecoin. In an official statement, the HKMA revealed that tokens bearing the ‘HKDAP’ and ‘HSBC’ labels are being traded, but are not associated with any approved issuer. The two applicant groups mentioned in related media releases, who have applied for stablecoin licenses, have confirmed that they have not released any regulated stablecoins. Earlier this month, the HKMA awarded its inaugural stablecoin licenses under the new Stablecoins Ordinance, which came into effect in August 2025, selecting two applicants out of 36. The selection of HSBC and a consortium led by Standard Chartered mirrors the existing monetary system in Hong Kong, where a limited number of commercial banks are authorized to issue banknotes. The HKMA has warned the public to be cautious of fraudulent activities and to only rely on official communications from licensed issuers, as well as to conduct transactions through regulated channels. Industry insiders anticipate the launch of licensed stablecoins to coincide with Hong Kong’s fintech week in November.