Share this article
Hong Kong's Central Bank Starts Regulatory Sandbox for Stablecoin Issuers
The regulator invited applicants with a "genuine interest in developing a stablecoin issuance business" to join the sandbox.
Updated Mar 12, 2024, 5:46 p.m. Published Mar 12, 2024, 9:59 a.m.
- Hong Kong's central bank is inviting businesses interested in issuing fiat-backed stablecoins to join a regulatory sandbox.
- The regulator plans to use the sandbox to shape its plans to regulate crypto pegged to real currencies.
The Hong Kong Monetary Authority (HKMA) started a regulatory sandbox to give potential stablecoin issuers an environment for developing and testing certain operations without penalties.
The sandbox provides regulatory leeway and aligns with Hong Kong's plan to regulate fiat-backed stablecoins, which are cryptocurrencies pegged to the value of sovereign currencies like the U.S. or Hong Kong dollar, the regulator said on Tuesday.
STORY CONTINUES BELOW
"Applicants should have genuine interest in developing a stablecoin issuance business in Hong Kong with a reasonable business plan, and their proposed operations under the sandbox arrangement will be conducted within a limited scope and in a risk-controllable manner," the HKMA notice said.
In December, the jurisdiction's regulators started seeking public views on its regulatory proposals for stablecoins – including requiring issuers to be licensed in order to operate in Hong Kong.
"The HKMA wishes to leverage the sandbox arrangement to communicate supervisory expectations to parties interested in issuing fiat-referenced stablecoins in Hong Kong, as well as to obtain feedback from participants on the proposed regulatory requirements," the notice said.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
CFTC's acting chief Pham poised to go to crypto firm MoonPay once Mike Selig lands
The leader of the derivatives regulator is planning to join the crypto industry as the CFTC and other federal regulators work on policies to benefit the sector.
What to know:
- Commodity Futures Trading Commission Acting Chairman Caroline Pham confirmed again that she's heading to crypto firm MoonPay when the Senate confirms her replacement and he's sworn in.
- President Donald Trump's CFTC chair nominee Mike Selig was set for a Senate vote Wednesday evening, according to that chamber's schedule.
- Selig, currently an SEC official, would arrive at the CFTC just as several of Pham's crypto initiatives have gone live.
Top Stories
