The Hong Kong Monetary Authority (HKMA) announced on Tuesday (12th) the launch of a “sandbox” for stablecoin issuers interested in issuing fiat-backed stablecoins in Hong Kong. Participating institutions will be able to operate within the sandbox in a limited scope and with controlled risks.
According to the press release, the HKMA aims to use the sandbox to communicate regulatory expectations and provide compliance guidance to “issuers who have a genuine intention and reasonable plans to issue fiat-backed stablecoins in Hong Kong,” with the goal of promoting the implementation of subsequent regulatory frameworks. The regulator will also collect feedback from participants on the proposed regulatory requirements to ensure that the frameworks align with regulatory objectives.
Vincent Chok, the CEO of stablecoin issuer First Digital, stated in an interview with The Block that the company plans to participate in the regulatory sandbox as they prepare to launch a stablecoin denominated in Hong Kong dollars later this year.
Further reading: “Stablecoins: Are they really stable as a medium of exchange and a store of value in the world of cryptocurrencies?”
