Hong Kong Monetary Authority: Currently, participants in the stablecoin issuer sandbox are not allowed to raise funds from the public, and violations

On July 19th, Hong Kong Monetary Authority (HKMA) Deputy Chief Executive Arthur Yuen wrote in "Fintech Newsletter" that the first batch of three institutions participating in the "sandbox" for stablecoin issuers proposed major application scenarios, including payment, supply chain management, and capital market use cases. In addition to the above application scenarios, the "sandbox" participating institutions also proposed other use cases, including Web3, gaming, and virtual asset trading.

Yuen stated that these institutions must strictly comply with the requirements of the "sandbox", such as not raising funds from the public or providing any investment products in the name of the "sandbox", and not using public funds in the initial stage. If the "sandbox" participants can use public funds within a limited scope due to adjustments in the testing scope, HKMA will make separate announcements. If any violations are found, HKMA will immediately terminate the eligibility of the relevant participating institutions.