blockchainreporter.net
The Hong Kong Monetary Authority (HKMA) has officially launched the stablecoin issuer sandbox arrangement, providing a platform for testing and refining the regulatory framework for stablecoin issuers in the region.
As part of the ongoing consultation on the legislative proposal for implementing a regulatory regime for stablecoin issuers, the HKMA aims to use the sandbox arrangement to convey supervisory expectations to entities interested in issuing fiat-referenced stablecoins in Hong Kong. The initiative also seeks valuable feedback from participants on the proposed regulatory requirements.
To participate in the sandbox arrangement, applicants must demonstrate a genuine interest in developing a stablecoin issuance business in Hong Kong and submit a comprehensive business plan. Operations under the sandbox arrangement will be conducted within a limited scope and risk-controllable manner, ensuring a focused and controlled environment for testing and refinement.
Interested parties are encouraged to review the details of the sandbox arrangement provided in the Annex accompanying the announcement. The information outlines the specific criteria for eligibility, operational limitations, and the overall structure of the sandbox program.
Transparency through Participant List
The HKMA will maintain and update a list of participants in the sandbox arrangement on its official website, ensuring transparency and providing stakeholders with timely information on the entities involved.
Mr. Eddie Yue, the Chief Executive of the HKMA, emphasized the importance of the sandbox arrangement as an effective channel for collaboration between the regulatory authority and the industry.
He stated, “The sandbox arrangement serves as an effective channel for the HKMA and the industry to exchange views on the proposed regulatory regime, and will facilitate the formulation of fit-for-purpose and risk-based regulatory requirements, which is key to promoting the sustainable and responsible development of the stablecoin issuance business.”