Fake ‘HSBC’ Stablecoins Emerge Before Launch—Hong Kong Issues Warning

Hong Kong’s financial regulator has warned about fake tokens claiming to be associated with licensed stablecoin issuers HSBC and Anchorpoint.

Both Anchorpoint & HSBC Confirm No Official Stablecoin Launch Yet

The Hong Kong Monetary Authority (HKMA) has posted a notification on its website warning the public regarding certain stablecoins floating around that claim to be issued by licensed issuers.

Since the passage of the stablecoin bill last year, only entities that have received a license from the HKMA can launch stablecoins in Hong Kong. So far, only two firms have been approved by the regulator: The Hongkong and Shanghai Banking Corporation Limited and Anchorpoint Financial Limited.

According to the HKMA, tokens pretending to be issued by these companies have started circulating. “Tokens with tickers “HKDAP” or “HSBC” have been launched, but they are not issued by or otherwise associated with licensed stablecoin issuers,” noted the financial regulator.

HSBC confirmed in a press release that the bank, which received a license earlier this month, hasn’t launched any stablecoin in the Chinese city yet. The firm noted that it plans to release its Hong Kong-dollar denominated stablecoin in the second half of the year. “At launch, the HSBC issued stablecoin will only be offered through PayMe and the HSBC HK Mobile App,” added HSBC.

Anchorpoint, which is a joint venture between Standard Chartered, Hong Kong Telecom, and Animoca Brands, has released a similar press release, stating that it hasn’t launched any product with the “HKDAP” branding so far. Anchorpoint didn’t confirm a release timeframe in this announcement, but an earlier statement said that the JV plans a phased launch from the second quarter of the year.

The HKMA noted:

Members of the public should stay vigilant against fraudulent activities or scams that are purported to be associated with the licensees or their stablecoin issuance.

Before HSBC and Anchorpoint were given licenses, the HKMA had revealed that it had received a total of 36 applications, showcasing interest from firms in issuing fiat-tied cryptocurrencies in the region. The regulator ended up going with a cautious approach, however, as it provided licenses to just two of them. Currently, it’s unclear when the rest of the applications will be processed.

The stablecoin sector has historically been dominated by tokens tied to the United States dollar, so the launch of HKD tokens could potentially add a new flavor to the market this year.

In Europe, a consortium of major banks is also planning to challenge the USD hegemony with its euro-backed token. Initially, the group involved nine banks, but over time, it has grown to have twelve members. The consortium intends to release the coin in the second half of the year.

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