The Hong Kong stablecoin is set to undergo testing with major players like Standard Chartered Bank and Animoca Brands in a recent development. The Monetary Authority of Hong Kong made an official announcement on July 18 regarding the first group of participants in the stablecoin sandbox. However, it was emphasized that these participants are not yet authorized to seek funding from the public, as Hong Kong aims to establish itself as a cryptocurrency hub.
The Hong Kong Monetary Authority (HKMA) revealed the list of participants in the stablecoin sandbox on July 18. The institutions involved include JINGDONG Technology Coinlink Hong Kong Limited, RD InnoTech Limited, Standard Chartered Bank (Hong Kong) Limited, Animoca Brands Limited, and Hong Kong Telecommunications (HKT) Limited. The HKMA granted permission for these institutions to test their operational plans for issuing stablecoins in order to develop an appropriate regulatory framework based on risks.
The sandbox was launched in March as part of the HKMA’s efforts to support the stablecoin ecosystem in Hong Kong. Through this initiative, institutions can test their operational plans and engage in discussions on regulatory requirements in order to establish a suitable regulatory regime.
During the initial phase of the sandbox, participants are not allowed to handle public funds, solicit public funding, or offer any products related to the sandbox. The public is advised to be cautious of potential scams related to the sandbox. The HKMA will make a separate announcement if participants are permitted to handle public funds to a limited extent in the future.
In March, Conflux Network, the only public blockchain compliant with Chinese regulations, played a crucial role in the successful launch of AxHKD, a stablecoin backed by the Hong Kong dollar. This milestone was achieved through a collaboration with AnchorX, a local fintech company aiming to revolutionize the digital currency sector in Asia.
Disclaimer: The views expressed in this article are for informational purposes only and do not constitute financial or investment advice. Investing in cryptocurrencies carries a risk of financial loss.
Editor’s Choice: Elon Musk reveals a “secret agreement” proposed by the EU to “censor freedom of expression”, while Donald Trump confirms his participation in the Bitcoin 2024 Conference following an assassination attempt.