Standard Chartered is among the companies selected to participate in Hong Kong’s new stablecoin issuer sandbox. This announcement follows recent statements from the island’s regulators indicating that they will soon propose a regulatory framework for stablecoin issuers.
Joining Standard Chartered Bank (Hong Kong) in the sandbox are Animoca Brands, Jingdong Coinlink Technology Hong Kong, RD InnoTech, and Hong Kong Telecommunications (HKT). The Hong Kong Monetary Authority (HKMA) stated that these participants were chosen for their “genuine interest in developing a stablecoin issuance business in Hong Kong with a reasonable business plan.”
These companies will have the opportunity to test their operational plans while engaging in two-way communication regarding the proposed regulatory requirements. As these requirements are being developed, the HKMA and the Financial Services and the Treasury Bureau are finalizing their consultation conclusions on the legislative proposal for fiat-referenced stablecoin issuers.
After a public consultation that garnered over 100 submissions, they aim to present a legislative proposal “as soon as possible.” Eddie Yue, chief executive of the HKMA, remarked, “We believe that a well-regulated environment is conducive to the sustainable and responsible development of the stablecoin ecosystem in Hong Kong.”