The Hong Kong Monetary Authority plans to introduce a regulatory sandbox for stablecoin issuers in the near future, Hong Kong Finance Minister Paul Chan said in his 2024 Budget presentation on Wednesday.
Chan said in the announcement that the sandbox is designed to allow companies to test stablecoin initiatives, explore business models, and implement investor protection and risk management strategies in a controlled environment.
“Cybersecurity, along with investor and customer protection, is the most important issue in Web 3.0 development, embracing the ‘same activity, same risk, same regulation’ principle,” Chan added.
In December last year, the HKMA and the Financial Services and Finance Bureau (FSTB) jointly Consultation has begun Learn about licensing requirements for stablecoin issuers. This comes as Hong Kong is moving to regain its status as Asia’s cryptocurrency hub. pushed out the licensing system Digital asset trading platform last June.
The Hong Kong Securities and Futures Commission noted: official website Cryptocurrency trading platforms that have not submitted their license applications by February 29 will have until the end of May to cease operations in the region. So far, only two, OSL and Hashkey, have obtained operating licenses in Hong Kong.
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About the author
Danny Park is The Block’s East Asia reporter, writing about topics including Web3 development and cryptocurrency regulation in the region. He previously worked as a reporter for Forkast.News, where he actively covered the fall of Terra-Luna and FTX. Based in Seoul, Danny previously produced written and video content for media companies in Korea, Hong Kong and China. He holds a Bachelor’s degree in Journalism and Business Marketing from the University of Hong Kong.