Stablecoins are virtual assets designed to maintain a relatively stable value pegged to specific assets, typically fiat currencies. With increasing interconnectivity between traditional financial systems and virtual asset markets, the Hong Kong Monetary Authority (HKMA) is developing a regulatory regime for stablecoin issuers in Hong Kong. To facilitate smooth implementation, the HKMA has introduced a "Sandbox" arrangement, enabling collaboration with industry players to exchange feedback on proposed regulatory requirements.
Sandbox Participants
The HKMA has announced the following sandbox participants. For inquiries regarding the sandbox, please contact HKMA.
| Participant Name (Alphabetical Order) | Sandbox Entry Date (DD/MM/YYYY) |
|---|---|
| JD Coinlink Technology (Hong Kong) Limited | 18/07/2024 |
| RD InnoTech Limited | 18/07/2024 |
| Standard Chartered Bank (Hong Kong) Limited, Animoca Brands Limited, Hong Kong Telecommunications (HKT) Limited | 18/07/2024 |
Sandbox Arrangement Details
The sandbox allows the HKMA to:
- Communicate regulatory expectations and compliance guidelines to prospective fiat-referenced stablecoin issuers.
- Collect industry feedback on proposed regulatory requirements.
For full details, refer to this document.
Key Evaluation Criteria
- Demonstrated genuine intent and feasible plan to issue stablecoins in Hong Kong.
- Clear participation roadmap for the sandbox.
- Reasonable expectation of meeting proposed regulatory standards.
Application Process
- Submit expressions of interest via [email protected].
- HKMA may request additional information during review.
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Consultation Timeline & Summary
2022 Discussion Paper
HKMA released a crypto-asset and stablecoin discussion paper (English version), outlining proposed regulatory approaches for stablecoins.
2023 Consultation Conclusion
The summary report (English version) consolidated feedback and recommended regulating specific stablecoin-related activities.
2023-2024 Legislative Consultation
Joint consultation by HKMA and Financial Services and Treasury Bureau (Document) concluded in February 2024. The July 2024 summary addressed feedback on licensing scope and criteria.
FAQs
Q: Who can join the HKMA sandbox?
A: Entities planning to issue fiat-referenced stablecoins in Hong Kong with credible operational plans.
Q: What’s the sandbox duration?
A: While flexible, typical participation lasts 6-12 months for regulatory alignment.
Q: Are algorithmic stablecoins covered?
A: Current focus is on asset-backed stablecoins; algorithmic variants require further evaluation.
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Key Resources
Press Releases
- 2025/05/21 | 2024/07/18 | 2024/07/17
- 2023/12/27 | 2023/01/31 | 2022/01/12
Speeches
- 2025/04/29 | 2024/04/11
This regulatory initiative positions Hong Kong as a forward-thinking hub for virtual asset innovation while ensuring financial stability through structured oversight.