- Hong Kong’s HKMA has named its stablecoin trial participants.
- The participants will carry out trials in a sandbox “with effect from today.”
- The development follows public consultations on stablecoin regulation.
The Hong Kong Monetary Authority (HKMA) has announced the first batch of institutions admitted to its stablecoin issuer sandbox “with effect from today.”
This development follows HKMA’s joint statement with the Financial Services and the Treasury Bureau on Wednesday, which highlighted a resolution to introduce a bill for regulating stablecoins into the Legislative Council “as soon as possible.”
Hong Kong Stablecoin Trial Participants
According to a statement dated July 18, institutions that will participate in Hong Kong’s stablecoin issuer sandbox include JINGDONG Coinlink Technology, RD InnoTech, and a joint venture from Standard Chartered Bank, Animoca Brands, and Hong Kong Telecommunications.
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In addition to demonstrating “genuine interest” in Hong Kong stablecoin issuance, the HKMA said these institutions had a reasonable business plan and agreed that their proposed operations under the sandbox would be within a limited scope and in a “risk-controllable manner.”
“Through the sandbox, the HKMA allows institutions with plans to issue stablecoin in Hong Kong to conduct testing on their operational plans, and also facilitates the two-way communication on the proposed regulatory requirements, with a view to formulating fit-for-purpose and risk-based regulatory regime,” the statement read.Per the statement, participants are prohibited from soliciting funding from the general public or offering products associated with the sandbox at the initial stage. HKMA said it would issue a separate statement if the participants were allowed to deviate from the prohibitions.
Meanwhile, the joint statement by Hong Kong regulators on Wednesday implied that the HKMA would oversee the licensing of stablecoin issuers.
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Read about Polkadot’s recent business play in Hong Kong:
Polkadot Set Sights on Asia with PolkaPort East in Hong Kong
Stay updated on Hong Kong’s plan to scrutinize crypto firms physically:
Hong Kong Warns Crypto Firms to Prepare for Physical Scrutiny
