Ramazan Eles 
The Hong Kong Monetary Authority (HKMA) has launched a regulatory sandbox aimed at providing potential stablecoin issuers with an environment to develop and test specific operations without facing penalties.
According to the regulator, the sandbox offers regulatory flexibility and is in line with Hong Kong‘s strategy to oversee fiat-backed stablecoins, which are cryptocurrencies tied to the value of sovereign currencies such as the U.S. or Hong Kong dollar. The announcement was made by the HKMA on Tuesday.
Interested applicants are invited to participate in the sandbox if they have a genuine interest in establishing a stablecoin issuance business in Hong Kong and possess a reasonable business plan. Additionally, their proposed operations within the sandbox must be conducted within a limited scope and in a manner that controls risks, as stated in the HKMA notice.
In December, regulators in the jurisdiction began soliciting public feedback on their regulatory proposals for stablecoins. This included a requirement for issuers to obtain licensing to operate in Hong Kong.
“The HKMA aims to utilize the sandbox framework to convey supervisory expectations to parties looking to issue fiat-referenced stablecoins in Hong Kong, while also gathering feedback from participants regarding the proposed regulatory standards,” the notice outlined.
In the comment section, you can freely share your comments about the topic. Additionally, don’t forget to follow us on Telegram, YouTube, and Twitter for the latest news and updates.