Hong Kong Monetary Authority launches “sandbox” for stablecoin issuers

On March 12th, the Hong Kong Monetary Authority (HKMA) announced the launch of a "sandbox" program for stablecoin issuers, aimed at supporting the consultation work on regulatory legislation proposals for stablecoin issuers. The "sandbox" program provides a platform for institutions interested in issuing fiat-backed stablecoins in Hong Kong to communicate regulatory expectations and collect opinions, ensuring that applicants have a genuine intention and reasonable plan to develop stablecoin issuance business in Hong Kong. Operations within the "sandbox" will be conducted within a limited scope to ensure manageable risks.