Hong Kong seeks public consultation on stablecoin oversight

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.