The Stablecoin license regime of Hong Kong, which will begin on August 1, is attracting a significant interest in the financial and technological heavyweights of the region, and the local media in China report that more than 40 applications have been received.
But expectations are being attenuated by the reality that Hong Kong’s monetary authority (HKMA) It is likely that only a single digit licenses number is approved, according to reports, which makes this one of the most competitive regulatory careers in the history of digital finance of the city.
Despite the avalanche of interest, so far only three companies have been admitted in the HKMA Stablecoin Arena Caja, including a joint business between Standard Chartered and animacas brands.
According to an HKMA informative sheet, Sandbox was created to allow companies with a genuine and well developed plan to issue stable referenced with Fiat to commit to regulators, refine compliance models and offer comments on the proposed rules.
Admission is not a backup or guarantee of licenses and Sandbox participants must still formally apply once the complete regime is live. However, the limited number of companies accepted in this test phase offers an early vision of how narrow the approval funnel can be.
According to reports, most companies that are prepared to run are among banks, payment processors and Internet companies in China, according to reports.
The joint company of Standard Chartered, the JD.com Blockchain division and the Ant Group digital finance units will be contenders, with the participants Standard Chartered and JD and Sandbox participants, are expected to be Sandbox.
The cautious approach of HKMA seems to be consistent with the way in which the Commission of Securities and Future (SFC) He has handled virtual asset platforms, granting only 11 licenses so far.
During the SFC license process for virtual asset platforms, several high profile contenders withdrew their applications, and the reports at that time indicated that the regulator discovered “unsatisfactory practices” in some exchanges.
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