Standard Chartered Earns Participation In Hong Kong Stablecoin Sandbox Program

The Hong Kong Monetary Authority announced that Standard Chartered had become one of the participants in its stablecoin issuer sandbox.

Standard Chartered will release stablecoins in Hong Kong to explore its plans after getting approval from the Hong Kong Monetary Authority. This participation allows the bank to talk about the proposed rules and aims to create an appropriate regulatory system based on risks.

HKMA Chose Five Organizations With Genuine Interest In Stablecoins To Join Its Sandbox

The Hong Kong Monetary Authority revealed other organizations that will participate in the stablecoin issuer sandbox. They include RD InnoTech Limited, Hong Kong Telecommunications Limited, Animoca Brands Limited, and JINGDONG Coinlink Technology Hong Kong Limited.

The regulator said these institutions were picked because they were interested in starting a stablecoin business in Hong Kong. They provided sensible business plans and suggested operations within the sandbox framework that would be carried out on a small scale and managed to control risks.

While participating, these entities won’t be allowed to handle or request funds from the public. However, the Hong Kong Monetary Authority said this law might change later. New partakers could also join the program later. The regulator has advised the public to be aware of possible scams alleging to be connected to the sandbox.

Hong Kong Strives To Become A Regional Cryptocurrency Center

The latest Hong Kong Monetary Authority’s announcement comes a day after it said it was reviewing applications for its stablecoin issuer sandbox.

Hong Kong is trying to become a regional cryptocurrency center by creating stablecoin frameworks, giving licenses to industry leaders like Copper, and updating regulations. However, the city still has challenges.

Under the Hong Kong Monetary Authority’s new regulations, stablecoin issuers that link to fiat money must get a license from the regulator. This decision is based on the results of its stablecoin consultation.

During the two-month public consultation that ended in February, 108 replies were received from industry associations, professional and business organizations, market participants, and other stakeholders.

Hong Kong’s Treasury Secretary, Hui, reported on a parliamentary discussion earlier this month. He said the Securities and Futures Commission and the Hong Kong Monetary Authority are looking to provide regulations for digital assets. He noted that the agencies will watch market changes and adjust the rules for VA-related activities as needed.

Hui made these comments in response to a lawmaker who asked if regulators would speed up the process of approving cryptocurrency licenses.

Standard Chartered has been a significant player in developing tokenization in Hong Kong. The bank said earlier this year that it is collaborating with Mastercard and some other partners to create new use cases on the advantages of tokenized deposits.