Unofficial Hong Kong Stablecoins Emerge Amid Regulatory Vacuum

The Hong Kong Monetary Authority has cautioned that fake stablecoins are taking advantage of the city's upcoming stablecoin framework, even before the introduction of the first licensed product. In an official statement, the HKMA revealed that tokens labeled with ‘HKDAP’ and ‘HSBC’ are being traded, but are not associated with any authorized issuer. The two licensed stablecoin applicants mentioned in related media reports have confirmed that they have not released 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 them to only rely on official communications from licensed issuers and to conduct transactions through regulated channels. According to insiders, the launch of authorized stablecoins is expected to take place during Hong Kong's fintech week in November.