Unauthorised Hong Kong Stablecoins Emerge Amid Regulatory Vacuum

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 the first licensed stablecoin product. In an official statement, the Hong Kong Monetary Authority (HKMA) revealed that tokens labelled ‘HKDAP’ and ‘HSBC’ are being traded, although they have no affiliation with any licensed issuer. The two applicants for stablecoin licenses referenced in related media releases confirmed that they have not issued any regulated stablecoins. Earlier this month, the HKMA awarded its inaugural stablecoin licenses under the Stablecoins Ordinance, which became effective in August 2025, selecting two groups from 36 applicants. This decision mirrors the existing monetary system in Hong Kong, where a limited number of commercial banks are authorised to issue banknotes. The HKMA 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. According to insiders, the launch is expected to take place during Hong Kong's fintech week in November.