Standard Chartered, Animoca, Among HKMA's Stablecoin Sandbox New Participants

Hong Kong Monetary Authority (HKMA) has announced five new participants of its stablecoin sandbox including Standard Chartered (Hong Kong) and Animoca Brands.

The other three entities are Jingdong Coinlink Technology Hong Kong, RD InnoTech and Hong Kong Telecommunications (HKT).

"During the assessment process, these institutions were able to demonstrate genuine interest in developing a stablecoin issuance business in Hong Kong with a reasonable business plan, and that their proposed operations under the sandbox arrangement would be conducted within a limited scope and in a risk-controllable manner," the announcement stated.

At this stage, the entities will not be able to handle funds from the public and cannot solicit funding from the public but HKMA said it hasn't ruled this out in the future. New participants might also join the program at a later date.

The regulator also warned the public to "stay vigilant to potential scams purporting to be related to the sandbox."

HKMA's announcement comes one day after the regulator revealed it was processing applications for its stablecoin issuer sandbox.

"Applicants should have genuine interest in developing a stablecoin issuance business in Hong Kong with a reasonable business plan, and their proposed operations under the sandbox arrangement will be conducted within a limited scope and in a risk-controllable manner," the HKMA notice said.

Additionally, under HKMA's new rules, issuers of stablecoins that track fiat will be required to obtain a license from the regulator.

The move comes as part of the conclusions of its consultation on stablecoins. Over the two-month public consultation period that concluded in February this year, 108 submissions were received from market participants, industry associations, business and professional organizations, and other stakeholders.

During a parliamentary questioning session earlier this month, Treasury Secretary Hui said that the HMKA and the SFC are reviewing regulations regarding digital assets.

HKMA and the SFC will “keep in view market developments and review the requirements on VA-related activities as appropriate,” Hui stated.

Hui made the remarks in response to a lawmaker who questioned whether regulators would accelerate the vetting process for crypto licenses.