Unofficial Hong Kong Stablecoins Emerge Amid Regulatory Vacuum

Hong Kong's financial regulator has cautioned that fake stablecoins are taking advantage of the city's upcoming stablecoin framework, even before the launch of the first officially licensed product. The Hong Kong Monetary Authority stated that certain tokens bearing the 'HKDAP' and 'HSBC' labels are in circulation, but are not affiliated with any authorized issuer. This development comes after the HKMA recently granted its inaugural stablecoin licenses under the Stablecoins Ordinance, which became effective in August 2025, selecting two applicants from a total of 36. The chosen entities, which include a group led by Standard Chartered and another involving HSBC, reflect Hong Kong's existing banking system, where a limited number of commercial banks are authorized to issue banknotes. The HKMA has warned the public to be cautious of fraudulent activities, advising them to only rely on official communications from licensed issuers and to conduct transactions through regulated channels. Industry insiders anticipate the official launch of licensed stablecoins to coincide with Hong Kong's fintech week in November.