The Hong Kong Monetary Authority (HKMA) announced the list of participants in the "sandbox" for stablecoin issuers yesterday (7/18). A total of 3 groups of institutions were selected. Participants will be able to test the issuance process and business model of stablecoins within a controllable range. . These 3 institutions are:
JD Coin Chain Technology (Hong Kong);
Yuanbi Innovation Technology;
Standard Chartered Bank (Hong Kong), Animoca Brands, Hong Kong Telecom.
The Hong Kong Monetary Authority stated that it will continue to process inquiries and applications for participating in the "Sandbox", and if there are new participants, it will be announced in due course.
Entering the “sandbox” is not a prerequisite for applying for a stablecoin issuer license
Chen Weimin, deputy president of the Hong Kong Monetary Authority, wrote that after entering the "sandbox", these three institutions can test the expected business model within the designated scope and communicate with the Hong Kong Monetary Authority on how to comply with the proposed stable currency regulatory system in the future.
Chen Weimin explained that the purpose of establishing the "sandbox" is to test the business processes of stablecoin issuers and evaluate how they can conduct stablecoin business in Hong Kong in a compliant and sustainable manner. Therefore, applicants entering the “sandbox” need to demonstrate detailed and feasible business and “sandbox” plans.
However, he also mentioned that entering the "sandbox" is not a prerequisite for applying for a stablecoin issuer license in the future. Even participating institutions that have entered the "sandbox" must submit separate submissions after the regulatory system is implemented if they intend to obtain a license in the future. Formal application.
3 major application scenarios: payment, supply chain management and capital market
According to Chen Weimin, the main application scenarios proposed by the above three institutions include: "payment", "supply chain management" and "capital market" use cases.
He said that in addition to playing the role of a "transaction medium", stablecoins can reduce costs and save transaction time. They can also use their programmable features to develop a variety of innovative solutions, automate and intelligentize financial service processes, and facilitate capital flows. In addition, various risks related to transactions can be managed more accurately.
In addition to the above application scenarios, "sandbox" participating institutions have also proposed other use cases, including Web3, games, and virtual asset transactions.
It is not allowed to raise funds from the public in the name of "sandbox", and public funds cannot be used in the initial stage.
He emphasized that these institutions must strictly abide by the requirements of the "sandbox". For example, they must not raise funds from the public or provide any investment products in the name of the "sandbox", and they must not use public funds in the initial stage. If "sandbox" participants are allowed to use public funds on a limited basis due to adjustments to the testing scope, the HKMA will make a separate announcement. If any irregularities are discovered, the HKMA will immediately terminate the qualifications of the relevant participating institutions.
Chen Weimin said that if any organization claims to have entered the Hong Kong Monetary Authority's "sandbox" for stablecoin issuers and promotes stablecoins or related products to the public, the public should be alert, "because this is definitely a scam."
Disclaimer: This article is only to provide market information. All contents and opinions are for reference only. They do not constitute investment advice and do not represent the objective views and positions of the blockchain. Investors should make their own decisions and transactions. The author and Blockchain Client will not be held responsible for any direct or indirect losses caused by investors' transactions.
This article is reprinted with permission from: "Block Guest"
