Unlicensed Hong Kong Stablecoins Emerge Amid Regulatory Vacuum

The Hong Kong Monetary Authority has issued a warning regarding the emergence of counterfeit stablecoins, which are capitalizing on the city's newly introduced stablecoin framework before any officially licensed products have been launched. According to an official statement from the HKMA, certain tokens labeled as ‘HKDAP’ and ‘HSBC’ are being traded, although they have no affiliation with any authorized issuers. The statement also confirmed that the licensed applicants referenced in related media reports have not issued any regulated stablecoins. Earlier this month, the HKMA granted its inaugural stablecoin licenses under the Stablecoins Ordinance, which came into effect in August 2025. A total of two groups were selected from a pool of 36 applicants, mirroring the existing monetary system in Hong Kong where a limited number of commercial banks are authorized to issue banknotes. The HKMA has advised the public to exercise caution and remain alert to potential scams, recommending that users rely solely on official communications from licensed entities and conduct transactions through authorized channels. Industry insiders anticipate that the launch of licensed stablecoins will take place during Hong Kong's fintech week in November.