Counterfeit Stablecoins Emerge in Hong Kong Ahead of Official Launch

Hong Kong's financial regulator has cautioned that fake stablecoins are taking advantage of the upcoming stablecoin framework, even before the introduction of the first authorized product. The Hong Kong Monetary Authority (HKMA) stated that tokens bearing the 'HKDAP' and 'HSBC' labels are being traded, but are not affiliated with any licensed issuer. The two applicants for stablecoin licenses referenced in 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 out of 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 advised the public to be cautious of fraudulent activities and to only rely on official communications from licensed issuers, conducting transactions through regulated channels. Industry insiders expect the official launch to occur during Hong Kong's fintech week in November.