The Hong Kong Monetary Authority (HKMA) has released the list of three participants who will take part in its stablecoin sandbox, and they will go through assessments further.
The Hong Kong Monetary Authority (HKMA) had initiated a stablecoin sandbox in March 2024. After months of consultations, the regulator has selected three participants for the stablecoin issuer sandbox. One of them is a group of Standard Chartered Bank, Animoca Brands, and Hong Kong Telecommunications. The other two participants are a fintech company, and RD Innotech Limited.
A press release by the HKMA shared the details of the stablecoin issuer sandbox. The participants above demonstrated their willingness and ability to run a stablecoin issuance business. Under the sandbox, their business plans will be tested, and risks will be controlled. Meanwhile, the release said that the sandbox was part of HKMA’s plan to create a responsible stablecoin ecosystem.
Further, all the participants in the sandbox will have to comply with the rules. They won’t be able to handle public funds initially or raise funds from them. They will also not be able to offer any products to the public. The HKMA also cautioned the public to be vigilant of any sandbox scam. They would continue to accept new applications for sandbox participation.
At the same time, Darryl Chan, the HKMA’s Deputy Chief Executive, released a communiqué on the development. He noted that the industry had welcomed the announcement of the sandbox. Chan also added that the participants would continue to engage with the HKMA on future compliance and regulatory requirements.
He stated, “The sandbox enables us to better understand the business models of stablecoin issuers with a view to assessing their plans to start stablecoin issuance business in Hong Kong in a compliant and sustainable manner.”
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