Unofficial Hong Kong Stablecoins Emerge Amid Regulatory Vacuum

Hong Kong's financial regulator has cautioned that fake stablecoins are taking advantage of the city's upcoming stablecoin framework, even before the introduction of a single officially sanctioned product. In an official statement, the Hong Kong Monetary Authority (HKMA) revealed that tokens labeled with ‘HKDAP’ and ‘HSBC’ are being traded, but are not affiliated with any approved issuer. The HKMA also mentioned that two licensed stablecoin applicants, referenced in related media reports, have confirmed that they have not issued any regulated stablecoins. Earlier this month, the HKMA awarded its inaugural 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 mirrors the existing monetary system in Hong Kong, where a limited number of commercial banks are authorized to issue banknotes. The HKMA warned the public to be cautious of fraudulent activities and advised users to only rely on official communications from licensed issuers and to conduct transactions through authorized channels. According to insiders, the launch of official stablecoins is expected to take place during Hong Kong's fintech week in November.