Hong Kong’s central bank warned that counterfeit tokens are already exploiting the city’s incoming stablecoin regime before a single licensed product has even been introduced.
In a statement, the Hong Kong Monetary Authority (HKMA) said tokens using the tickers “HKDAP” and “HSBC” are circulating in the market but have no connection to any authorized issuer. Both licensed stablecoin applicants referenced in related press material confirmed that they have not issued any regulated stablecoins, it said.
Earlier this month, the HKMA awarded its first stablecoin licenses under the Stablecoins Regulation, which will take effect in August 2025, selecting two groups from a pool of 36 applicants. The choice of HSBC and a Standard Chartered-led entity reflects Hong Kong’s existing monetary system, where a small group of commercial banks are authorized to issue banknotes.
The HKMA urged the public to “be alert to fraudulent activities”, advising users to only rely on official communications from licensees and to transact through regulated channels.
Insiders say they expect a launch during Hong Kong’s fintech week in November.
