HKMA Warns of Fraudulent Stablecoins Ahead of Official Launch

The Hong Kong Monetary Authority (HKMA) has issued a stern warning regarding the circulation of counterfeit stablecoins designed to exploit the city's new regulatory framework. The regulator noted that tokens using the tickers 'HKDAP' and 'HSBC' are currently trading, despite having no connection to any authorized issuer. This warning comes as the market anticipates the first licensed stablecoins under the Stablecoins Ordinance, which became effective in August 2025. While the HKMA has already granted licenses to two entities—HSBC and a group led by Standard Chartered—selected from a pool of 36 applicants, no authorized products have been released to the public. Both licensed applicants have confirmed that they have not yet issued any regulated stablecoins. The current structure of the licensing process mirrors Hong Kong's traditional monetary system, restricting issuance to a small group of authorized commercial banks to ensure stability and oversight. The HKMA has urged the public to remain vigilant and rely solely on official communications from licensees. Industry insiders expect the legitimate stablecoin launches to coincide with Hong Kong's fintech week in November. This incident highlights the ongoing risks of impersonation and fraud within the digital asset space as jurisdictions move toward formal regulation.