- Hong Kong plans to roll out a regulatory sandbox for issuers of stablecoins.
- It will allow companies to test “stable coins” under the supervision of regulators.
In Hong Kong announced plans to create a regulatory sandbox for issuers of stablecoins. This was revealed by Hong Kong Financial Secretary Paul Chan during the announcement of the budget for 2024.
He said the sandbox is intended to allow companies to test “stable coin issuance,” explore business models and implement investor protection and risk management strategies in a controlled environment under the supervision of regulators.
“Cybersecurity as well as investor and customer protection are issues of paramount importance in the development of Web3,” Chan added.
Note, earlier Hong Kong financial regulators proposed to oblige issuers of stablecoins to obtain a license to operate in the local market. Then representatives of the Hong Kong Monetary Authority and the Office of Financial Services and Treasury argued their position to protect the interests of users.
It should also be recalled that in November 2023, the Ministry of Digital Transformation of Ukraine reported that it was working on a regulatory sandbox for innovative projects.
