Hong Kong's financial regulator unveils a list of its stablecoin issuer sandbox participants, including Standard Chartered and Animoca Brands

The Hong Kong Monetary Authority (HKMA) has announced the list of participants of the stablecoin sandbox, who can already start their experiments with issuing digital currencies backed by fiat currencies.

Hong Kong’s financial regulator has unveiled the list of participants of its stablecoin sandbox, a regulatory initiative that will allow participants to conduct experiments in issuing digital currencies pegged to fiat currencies.

In an announcement on Thursday, the Hong Kong Monetary Authority (HKMA) revealed that a total of five participants will be permitted to begin their stablecoin trials in Hong Kong.

The participants include e-commerce giant JD.com’s subsidiary JINGDONG Coinlink Technology Hong Kong, blockchain company RD InnoTech, and a collaboration involving Standard Chartered Bank (Hong Kong), Animoca Brands and Hong Kong Telecommunications.

According to a person familiar with the matter, the coalition will be leveraging the institutional digital asset custody capabilities of Zodia Custody, which is partly owned by Standard Chartered, to conduct their stablecoin trials in Hong Kong.

The HKMA said that the aforementioned companies had demonstrated “genuine interest in developing a stablecoin issuance business in Hong Kong with a reasonable business plan,” and that their sandbox pilots “would be conducted within a limited scope and in a risk-controllable manner.”

The regulator also highlighted that during the sandbox piloting, its members “will not handle the general public’s funds at the initial stage, and will not solicit funding from the public or offer any products associated with the sandbox.”

This announcement follows Hong Kong’s disclosure that it received over 100 submissions from market participants endorsing the establishment of a stablecoin licensing regime. As reported by crypto.news, a “vast majority” of the 108 respondents to a public consultation agreed on the need for regulatory oversight as virtual assets continue to evolve in the market.

HKMA Chief Executive Eddie Yue highlighted the potential for a well-regulated environment to foster the sustainable and responsible growth of the stablecoin ecosystem in Hong Kong.

The above is the detailed content of Hong Kong's financial regulator unveils a list of its stablecoin issuer sandbox participants, including Standard Chartered and Animoca Brands. For more information, please follow other related articles on the PHP Chinese website!