Digital Banking

Hong Kong central bank starts regulatory sandbox for stablecoins

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March 12, 2024

The Hong Kong Monetary Authority, a central bank, introduced a regulatory sandbox to allow stablecoin issuers to test stablecoins without penalties. This is part of Hong Kong's larger plan to regulate fiat-backed stablecoins, according to a report by Coin Desk.

"Applicants should have genuine interest in developing a stablecoin issuance business in Hong Kong with a reasonable business plan, and their proposed operations under the sandbox arrangement will be conducted within a limited scope and in a risk-controllable manner," the HKMA notice said.

Last year, the central bank first published proposals for stablecoin issuers to offer licenses and the regulatory sandbox for them.