Hong Kong Monetary Authority Launches Stablecoin Issuer Sandbox

According to PANews, the Hong Kong Monetary Authority (HKMA) has announced the launch of a stablecoin issuer sandbox. The sandbox aims to convey regulatory expectations to institutions interested in issuing fiat-backed stablecoins in Hong Kong and collect feedback on proposed regulatory requirements. Applicants must have a genuine intention and reasonable plan to develop stablecoin issuance business in Hong Kong. The proposed operations under the sandbox will be conducted within a limited scope and under controlled risk, with the list of participants to be published and updated on the HKMA website. The HKMA will consider a range of factors when evaluating sandbox applications. Success in becoming a sandbox participant does not imply any endorsement from the HKMA or eligibility for current or future regulation by the HKMA or other financial regulatory authorities in Hong Kong. Applicants need to demonstrate: 1. A genuine intention and reasonable plan to issue fiat-backed stablecoins in Hong Kong; 2. Specific plans for participating in the sandbox; 3. The ability to meet reasonable expectations for compliance with proposed regulatory requirements.