Hong Kong warns against fake HKDAP and HSBC tokens

The Hong Kong Monetary Authority (HKMA) has issued a public warning about unlicensed stablecoin tokens circulating under the names “HKDAP” and “HSBC,” emphasizing that these assets are not connected to any authorized entity. The statement highlighted that these tokens have not been approved by any regulated institution, urging investors to exercise caution in light of potential fraud risks.

Official stablecoins not yet launched

The latest move comes after the HKMA recently issued its first stablecoin licenses as part of the Stablecoin Law, which will come into effect in August 2025. Among the successful applicants are consortia led by major banks including HSBC and Standard Chartered. This approach mirrors Hong Kong’s traditional currency issuance model, where only selected banks are authorized to print paper money—now adapted to the digital assets sphere.

However, according to statements from these licensees, no stablecoins have been officially issued yet. The appearance of tokens with similar names in the market suggests that some actors are attempting to exploit the regulatory process for illicit gains.

Warning over fraudulent tokens

Officials have called on investors to remain vigilant against fraud attempts. The HKMA has advised the public to trust only official statements and avoid trading on unregulated platforms. A surge in fake tokens, especially on social media and other online channels, has prompted regulatory bodies to step up their communications and surveillance.

The HKMA stated, “We recommend that the public follow official communications from licensed institutions only, and refrain from dealing with unverified tokens.”

Launch timeline becomes clearer

According to sources familiar with the matter, the first official launches of Hong Kong-regulated stablecoins are expected during the city’s FinTech Week in November. Industry participants believe that with the licensing announcements and the introduction of regulated products, Hong Kong is poised for a significant new phase in its crypto market development.

The HKMA serves as the region’s chief financial regulator, closely monitoring unlawful activities in the crypto sector and regularly updating market participants about potential threats.

Limiting stablecoin issuance to approved entities aims to reduce risks for investors. Yet, it has now been confirmed that, so far, no fully licensed stablecoins have been brought to market.

Experts suggest that Hong Kong’s evolving regulations will help the city gain a more influential position in the global stablecoin market. Nonetheless, the ongoing presence of fraudulent digital assets and scams continues to be a major factor shaping investor confidence.

These events underscore the critical importance of regulation and public awareness in maintaining trust and integrity across digital assets.