The Hong Kong Monetary Authority (HKMA) announced the participants of its stablecoin issuer sandbox, which aims to foster the responsible development of the stablecoin ecosystem in Hong Kong.
Effective immediately, the institutions participating in the sandbox are JINGDONG Coinlink Technology Hong Kong Limited, RD InnoTech Limited, Standard Chartered Bank (Hong Kong) Limited, Animoca Brands Limited, and Hong Kong Telecommunications (HKT) Limited.
During the assessment process, these institutions demonstrated a genuine interest in developing a stablecoin issuance business in Hong Kong, presenting reasonable business plans and ensuring their proposed operations would be conducted within a limited and risk-controllable scope.
Launched in March 2024, the sandbox is part of HKMA’s efforts to facilitate the sustainable and responsible development of the stablecoin ecosystem.
It allows institutions to test their operational plans and engage in two-way communication on regulatory requirements, aiming to develop a fit-for-purpose and risk-based regulatory regime.
Participants in the sandbox must comply with its requirements. Initially, they will not handle public funds or solicit funding from the public, nor will they offer any products associated with the sandbox.
The HKMA advises the public to remain vigilant against potential scams claiming to be related to the sandbox.
The Authority will make separate announcements if participants are permitted to handle public funds within a limited scope due to adjustments in the testing parameters.
The HKMA will continue to manage enquiries and applications for sandbox participation, with timely announcements for any new participants joining the initiative.
Business News Asia
