During the 2024 budget announcement on Wednesday, the financial secretary of Hong Kong, Paul Chan, revealed that the Hong Kong Monetary Authority (HKMA) plans to create a regulatory sandbox for stablecoin issuers in the near future.
The sandbox, according to Chan, will provide a controlled environment for companies to test their stablecoin initiatives, develop business models, and implement measures for investor protection and risk management.
Chan also stressed the importance of cybersecurity and protecting investors and customers in the development of web 3.0. He emphasized the principle of “same activity, same risks, same regulation” in regulating the growing sector.
In December 2020, the HKMA and the Financial Services and the Treasury Bureau (FSTB) launched a consultation on the licensing requirements for stablecoin issuers.
