BCGAME - Free 5BTC Daily Bonus!In a recent development, the Hong Kong stablecoin will be tested with large participants, such as Standard Chartered Bank and Animoca Brands. In an official announcement on July 18, Monetary Authority of Hong Kong reported on the first batch of stablecoin sandbox participants.
However, the release highlighted a warning that the aforementioned participants are not yet authorized to request funding from the public, given that the region continues to strive to become a cryptocurrency hub.
The Hong Kong Monetary Authority (HKMA) announced today (July 18) the list of participants in the sandbox of stablecoin issuers. The following institutions (in alphabetical order of their names) will participate in the sandbox with effect from today: JINGDONG Technology Coinlink Hong Kong Limited; RD InnoTech Limited; and Standard Chartered Bank (Hong Kong) Limited, Animoca Brands Limited, Hong Kong Telecommunications (HKT) Limited”.
The HKMA highlighted its permission for institutions to test operational plans aimed at issuing stablecoins “with the aim of formulating an appropriate and risk-based regulatory regime”.
O sandbox was launched in March this year and is an innovation that is part of the HKMA's efforts to facilitate the development of the stablecoin ecosystem in Hong Kong. “Through the sandbox, the HKMA enables institutions with plans to issue stablecoin in Hong Kong to conduct testing on their operational plans and also facilitates two-way communication on proposed regulatory requirements, with a view to formulating a fit-for-purpose and regulatory regime based on risk".
According to the regulator, in its initial stage, sandbox participants will not handle funds from the general public, nor will they solicit funding from the public, nor will they offer any products associated with the sandbox. “Members of the public should remain vigilant to potential scams that are believed to be related to the sandbox. The HKMA will make a separate announcement if sandbox participants are allowed to handle the general public's funds within a limited scope as a result of adjustments to the test scope.”
It is worth remembering that, in March, Conflux Network, the only public blockchain that complies with Chinese regulations, announced his crucial role in the successful launch of AxHKD, a stablecoin backed by the Hong Kong dollar (HKD). This development is the result of a collaboration with AnchorX, a local fintech that aims to revolutionize the digital currency sector in Asia.
