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

On July 19, Chen Weimin, vice president of the Hong Kong Monetary Authority, wrote in Huisi that the main application scenarios proposed by the first three institutions participating in the "sandbox" of stablecoin issuers include payment, supply chain management and capital markets 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.
These institutions must strictly abide by the requirements of the "sandbox", such as not raising funds or providing any investment products to the public in the name of the "sandbox", and not using public funds in the initial stage, Mr. Chan said. If the sandbox participants can use public funds to a limited extent due to the adjustment of the scope of the test, the HKMA will make a separate announcement. If any violations are found, the HKMA will immediately terminate the eligibility of the relevant participating institutions.