Unregulated Stablecoins Emerge in Hong Kong Amid Licensing Delay

The central banking authority of Hong Kong has issued a warning about the presence of counterfeit stablecoins, which are taking advantage of the impending regulatory framework for stablecoins in the city, even before the launch of the first licensed stablecoin. According to a statement released by the Hong Kong Monetary Authority, tokens bearing the 'HKDAP' and 'HSBC' tickers are currently being traded, despite having no affiliation with any authorized issuer. It has been confirmed by the licensed stablecoin applicants mentioned in the related press materials that they have not issued any regulated stablecoins. Earlier this month, the HKMA granted its inaugural stablecoin licenses under the Stablecoins Ordinance, which became effective in August 2025. Out of 36 applicants, two groups were selected, 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 against fraudulent activities, recommending that users rely solely on official communications from licensed entities and conduct transactions through regulated channels. Industry insiders anticipate that the launch will take place during Hong Kong's fintech week in November.