According to PANews, Hong Kong Financial Secretary Paul Chan revealed in the latest budget proposal that the Hong Kong Monetary Authority (HKMA) will launch a regulatory sandbox in the short term. This will allow institutions interested in issuing stablecoins to test the issuance process, business models, investor protection, and risk management systems within a controlled environment, as well as communicate on future regulatory requirements.
Chan also mentioned that the Hong Kong government had established legislative proposals for the regulation of stablecoin issuers at the end of last year, consulting public opinions with the goal of creating a regulatory system that protects financial stability without hindering innovation.
Chan added that cybersecurity and the protection of investors and consumers are crucial for the development of Web3.0. Adhering to the principle of 'same business, same risk, same rules,' the Hong Kong Securities and Futures Commission implemented a licensing system for virtual asset trading platforms in June last year. This system complies with relevant international standards and provides protection for investors, putting Hong Kong ahead of many major jurisdictions. To strengthen the protection of investors and consumers, the Hong Kong government is currently consulting on the regulation of over-the-counter trading services for virtual assets. They will continue to promote the stable and responsible development of the local virtual market through timely information dissemination, comprehensive public education, and enhanced law enforcement.
