Stablecoin

2024

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Hong Kong has initiated a sandbox arrangement for stablecoin issuers to establish regulations for future operations.
This move aligns with its objective to become a regional key player in the cryptocurrency sector. The Hong Kong Monetary Authority (HKMA) <a href="https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/03/20240312-4/" target="_blank" rel="noopener noreferrer nofollow">introduced</a> the sandbox to set supervisory standards for entities interested in issuing fiat-referenced stablecoins within Hong Kong.
Following a <a href="https://crypto.news/hong-kong-to-allow-stablecoin-issuance-testing-in-sandbox/" data-type="link" data-id="https://crypto.news/hong-kong-to-allow-stablecoin-issuance-testing-in-sandbox/" rel="noopener noreferrer nofollow">consultation period</a> that concluded on Feb. 29 regarding stablecoin regulation, the <a href="https://crypto.news/tag/HKMA/" data-type="link" data-id="https://crypto.news/tag/HKMA/" rel="noopener noreferrer nofollow">HKMA</a>, the Financial Services, and the Treasury Bureau in December had already suggested mandatory licensing for all fiat-referenced stablecoin issuers by the HKMA.
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 The HKMA announced the launch of the Stablecoin Issuer Sandbox Arrangement to communicate supervisory expectations and obtain feedback on our proposed regulatory requirements from parties looking to issue fiat-referenced stablecoins in HK. Read more: <a href="https://t.co/XIhMnN54xy" target="_blank" rel="noopener noreferrer nofollow">https://t.co/XIhMnN54xy</a> <a href="https://t.co/5KaybzQEGm" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/5KaybzQEGm</a>— HKMA 香港金融管理局 (@hkmagovhk) <a href="https://twitter.com/hkmagovhk/status/1767475863657107540?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">March 12, 2024</a>
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Eddie Yue, the HKMA’s chief executive, emphasized that the sandbox would facilitate dialogue between the HKMA and industry stakeholders, contributing to developing appropriate and risk-based regulatory requirements. This approach is essential for the stable and responsible expansion of the <a href="https://crypto.news/tag/stablecoin/" data-type="link" data-id="https://crypto.news/tag/stablecoin/" rel="noopener noreferrer nofollow">stablecoin</a> issuance sector.
Applicants for the <a href="https://crypto.news/tag/sandbox/" data-type="link" data-id="https://crypto.news/tag/sandbox/" rel="noopener noreferrer nofollow">sandbox</a> are expected to present viable business plans and ensure their operations are manageable and limited in scope.
“We see there’s a very good demand. It is still a very, very small market — lots of room to grow for not only us — but I think there are a lot of new stablecoins that will be coming on the market fairly soon,” said Vincent Chok, chief executive officer of First Digital, the issuer of FDUSD stablecoin. “We know that there are a lot of people that are lining up to apply for this Hong Kong stablecoin licensing as well.”
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Hong Kong’s central bank launches stablecoin regulatory sandbox

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