Unofficial Hong Kong Stablecoins Emerge Amid Regulatory Vacuum

Hong Kong's financial regulator has cautioned that bogus stablecoins are capitalizing on the city's upcoming stablecoin framework, even before the launch of a single authorized product. The Hong Kong Monetary Authority stated that tokens with 'HKDAP' and 'HSBC' labels are being traded, but are not associated with any authorized issuer. The two licensed applicants referenced in related media reports confirmed that they have not issued any regulated stablecoins. Earlier this month, the HKMA awarded its first stablecoin licenses under the Stablecoins Ordinance, which came into effect in August 2025, selecting two groups from 36 applicants. The selection of HSBC and a Standard Chartered-led entity reflects Hong Kong's existing banking system, where a limited number of commercial banks are authorized to issue banknotes. The HKMA warned the public to be cautious of fraudulent activities, advising users to only rely on official communications from licensed issuers and to conduct transactions through regulated channels. Industry insiders anticipate a launch during Hong Kong's fintech week in November.