Unofficial Hong Kong Stablecoins Emerge Amid Regulatory Vacuum

The central banking authority of Hong Kong has cautioned that fake stablecoins are taking advantage of the city's newly established stablecoin framework, even before the launch of the first authorized product. The Hong Kong Monetary Authority stated that tokens labeled 'HKDAP' and 'HSBC' are being traded, but are not affiliated with any licensed issuer. Both applicants for stablecoin licenses mentioned in related media reports confirmed that they have not released any regulated stablecoins. Earlier this month, the HKMA issued 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 is reminiscent of Hong Kong's existing monetary system, where a limited number of commercial banks are authorized to issue banknotes. The HKMA advised the public to be cautious of fraudulent activities, recommending that users rely solely on official communications from licensees and conduct transactions through regulated channels. According to insiders, the launch is expected to take place during Hong Kong's fintech week in November.