Hong Kong Monetary Authority (HKMA) and Financial Services and the Treasury Bureau are seeking public consultation on proposed stablecoin regulation.
The HKMA also stated it will be introducing a sandbox testing environment to offer guidelines and compliance expectations for potential stablecoin issuers.
The public consultation indicates an effort by the regulators to shape a structured path for future stablecoin frameworks and operations.
The sandbox environment will act as a simulator for practical applications of the proposed regulations before they are potentially adopted.