HKMA Reveals Participants for Stablecoin Issuer Sandbox

The
Hong
Kong
Monetary
Authority
(HKMA)
has
unveiled
the
list
of
participants
for
its
stablecoin
issuer
sandbox,
a
significant
initiative
aimed
at
promoting
the
sustainable
and
responsible
development
of
the
stablecoin
ecosystem
in
Hong
Kong.

Participants
Announced

In
a
press
release
dated
July
18,
2024,
the
HKMA
disclosed
the
names
of
the
institutions
selected
to
join
the
sandbox.
These
participants
include:

• JINGDONG
  Coinlink
  Technology
  Hong
  Kong
  Limited
• RD
  InnoTech
  Limited
• A
  consortium
  comprising
  Standard
  Chartered
  Bank
  (Hong
  Kong)
  Limited,
  Animoca
  Brands
  Limited,
  and
  Hong
  Kong
  Telecommunications
  (HKT)
  Limited

These
institutions
were
chosen
based
on
their
demonstrated
interest
in
developing
stablecoin
issuance
businesses
in
Hong
Kong,
coupled
with
reasonable
business
plans
and
risk-controlled
operational
proposals.

Sandbox
Objectives

Launched
in
March
2024,
the
sandbox
is
part
of
the
HKMA’s
broader
efforts
to
facilitate
the
growth
of
the
stablecoin
sector.
It
allows
institutions
to
test
their
operational
plans
and
engage
in
two-way
communication
regarding
regulatory
requirements.
This
collaborative
approach
aims
to
establish
a
fit-for-purpose
and
risk-based
regulatory
framework
for
stablecoins.

Operational
Guidelines

Participants
in
the
sandbox
are
required
to
adhere
to
specific
guidelines.
Initially,
they
will
not
handle
public
funds
or
solicit
investments
from
the
general
public.
The
HKMA
has
emphasized
the
importance
of
public
vigilance
against
potential
scams
claiming
association
with
the
sandbox.

The
HKMA
has
also
indicated
that
it
will
make
separate
announcements
if
sandbox
participants
are
permitted
to
handle
public
funds
within
a
limited
scope,
following
adjustments
to
the
testing
parameters.

Future
Developments

The
HKMA
will
continue
to
manage
enquiries
and
applications
for
sandbox
participation,
ensuring
timely
announcements
for
any
new
entrants.
This
initiative
underscores
the
HKMA’s
commitment
to
fostering
innovation
and
ensuring
the
stability
of
the
financial
ecosystem
in
Hong
Kong.

For
more
details,
please
refer
to
the
official
announcement
by
the

Hong
Kong
Monetary
Authority.

Image
source:
Shutterstock