The Hong Kong Monetary Authority (HKMA) has issued a public warning against cryptocurrency tokens using the tickers “HKDAP” and “HSBC,” stating that they are not affiliated with any licensed stablecoin issuers and may mislead investors.
Key Highlights
- HKMA flags “HKDAP” and “HSBC” tokens as unauthorized
- No licensed institutions have issued stablecoins as of April 28, 2026
- Warning targets misleading claims of regulatory approval
- Investors urged to verify legitimacy before engaging
HKMA Issues Strong Warning
The Hong Kong Monetary Authority said the tokens in question falsely imply connections to regulated financial institutions and licensed stablecoin issuers.
According to the regulator, neither token has any official backing or authorization under Hong Kong’s emerging stablecoin regulatory framework.
Authorities specifically cautioned that the use of recognizable names—such as “HSBC”—could create confusion and falsely suggest endorsement by established financial institutions.
No Licensed Stablecoins Yet
The HKMA clarified that no regulated stablecoins have been launched by licensed entities in Hong Kong as of April 28, despite growing interest in the sector.
Hong Kong has been actively developing a regulatory framework for stablecoins, including licensing requirements for issuers and strict compliance standards. However, the approval process is still ongoing.
This means that any token currently claiming official status under Hong Kong regulation should be treated with caution.
Misuse of Trusted Names Raises Concerns
One of the most concerning aspects of the flagged tokens is the use of the name “HSBC,” which is associated with HSBC, one of the world’s largest banking institutions.
Regulators warned that such branding tactics are often used in scams to exploit public trust and lure investors into fraudulent schemes.
The HKMA emphasized that legitimate financial institutions will not issue digital tokens without clear regulatory disclosures and official announcements.
Growing Stablecoin Market Attracts Fraud Risks
The warning highlights the increasing risks associated with the rapid growth of the stablecoin market. As governments and financial institutions explore regulated digital currencies, bad actors may attempt to exploit regulatory uncertainty.
Authorities noted that:
- Fake tokens often mimic legitimate projects
- Fraudsters use official-sounding tickers and branding
- Investors may be misled by claims of “regulatory approval”
Investor Advisory
The HKMA urged investors to take the following precautions:
- Verify token legitimacy through official regulatory channels
- Avoid projects claiming false affiliations with licensed institutions
- Be cautious of tokens using well-known brand names
The regulator also encouraged the public to report suspicious activities to authorities.
Conclusion
The HKMA’s warning serves as a reminder that Hong Kong’s regulated stablecoin market is still in development, with no officially licensed tokens currently in circulation.
As the regulatory framework evolves, investors are advised to remain vigilant and rely only on verified information to avoid falling victim to misleading or fraudulent digital asset schemes.
