The Hong Kong Monetary Authority (HKMA) announced today (March 3) the launch of a “sandbox” for stablecoin issuers.
To support the consultation on legislative proposals for the regulatory regime for stablecoin issuers, the HKMA hopes to use the sandbox to convey regulatory expectations to institutions interested in issuing fiat stablecoins in Hong Kong and collect participants' opinions on the proposed regulatory requirements.
Applicants must have a genuine intention and reasonable plan to develop stablecoin issuance business in Hong Kong, and the proposed operations of participants under the "Sandbox" will be carried out in a limited scope and with controllable risks. Interested parties can refer to the details of the "Sandbox" in the attachment.
The list of participants in the “Sandbox” will be published on the HKMA’s website and updated in due course.
HKMA Chief Executive Eddie Yue said: “The Sandbox provides an effective channel for the HKMA to exchange views with the industry on the proposed regulatory regime, helping the HKMA to formulate fit-for-purpose and risk-based regulatory requirements, which is crucial to promoting the sustainable and responsible development of the stablecoin issuance business.”