Hong Kong Regulator Warns of Fraudulent Stablecoins Targeting Licensed Issuers

The Hong Kong Monetary Authority (HKMA) has issued a public warning regarding the circulation of fraudulent tokens masquerading as products from the region’s newly licensed stablecoin issuers. The regulator confirmed that tokens bearing the tickers “HKDAP” and “HSBC” have appeared in the market but have no affiliation with the legitimate licensees. This alert comes less than three weeks after the HKMA granted its first stablecoin issuer licences, marking a critical test for the city’s emerging regulatory framework for digital assets.

Background and Context

Hong Kong has spent several years constructing a rigorous regulatory environment for virtual assets, aiming to position itself as a global hub for regulated crypto finance. The government’s strategy, signalled in 2022, evolved into a licensing regime for crypto exchanges in 2023 and the implementation of the Stablecoins Ordinance, which took effect in August 2025. Prior to full implementation, the HKMA operated a sandbox beginning in 2024 to allow potential issuers to test token designs under supervision. On April 10, the regulator granted the first licences to HSBC and Anchorpoint Financial, selecting them from a pool of 36 applicants. The HKMA has emphasized a "same activity, same risks, same regulation" approach, prioritizing risk management by limiting the number of initial licences.

Key Figures and Entities

According to public statements, both licensed entities have moved to distance themselves from the fraudulent tokens. HSBC confirmed it has not yet issued any stablecoins and stated that its Hong Kong dollar-denominated stablecoin, planned for launch in the second half of the year, will only be available through its official PayMe and HSBC HK Mobile App platforms. Anchorpoint Financial, a joint venture involving Standard Chartered, Animoca Brands, and Hong Kong Telecommunications, also issued a notice denying any connection to the fake “HKDAP” tokens. Both companies directed concerned customers to official fraud prevention resources, including the Hong Kong government’s Anti-Deception Coordination Centre.

Legal and Financial Mechanisms

The appearance of these counterfeit tokens exploits the interval between regulatory approval and the actual commercial launch of financial products. While the licences were granted on April 10, neither issuer has gone live yet; both are currently completing mandatory system testing, operational setup, and compliance checks. The HKMA has clarified that the regulated stablecoin market has not officially commenced. The mechanism of the scam involves bad actors leveraging the credibility of newly licensed institutions to deceive retail investors who may fail to verify the source of the token before purchasing. This highlights the persistent risk of "spoofing" in crypto markets, where legitimate regulatory developments are mimicked to facilitate fraud.

International Implications and Policy Response

The swift exploitation of Hong Kong’s licensing news underscores a broader challenge for financial regulators globally: balancing the promotion of fintech innovation with the need for robust consumer protection. While the HKMA’s restrictive licensing strategy aims to ensure only viable, low-risk products enter the market, the regulator cannot entirely police the broader crypto ecosystem where unregulated tokens trade. The incident serves as a reminder that official regulatory approval does not instantly eliminate market risk. The HKMA’s advisory reinforces the necessity for investors to rely solely on official banking channels and verified communications, rather than secondary market listings, until the licensed issuers formally announce their launches.

Sources

This report draws on official statements from the Hong Kong Monetary Authority, public advisories from HSBC and Anchorpoint Financial, and the Hong Kong government’s Anti-Deception Coordination Centre. Further context is derived from the Stablecoins Ordinance and HKMA regulatory filings regarding the 2024 sandbox program.