Hong Kong Monetary Authority: No cap on the number of participants in the stablecoin sandbox

Chan Wai-man, deputy general manager of the Hong Kong Monetary Authority, stated that there is no limit on the number of sandbox participants. Considering the characteristics of stablecoins and proposed regulatory requirements, specific requirements have been set for participating in this sandbox, including the need for applicants to demonstrate their genuine intention and reasonable plan to issue fiat stablecoins in Hong Kong, concrete plans for participating in the sandbox, and reasonable expectations of meeting proposed regulatory requirements. The HKMA will consider a range of factors, such as the application scenarios proposed by applicants, price stability mechanisms, reserve asset management, and user protection, to evaluate their applications, and will also maintain communication with applicants throughout the process.

Sandbox participants must comply with relevant terms and regulations, and the HKMA may terminate the eligibility of participants if there are any violations of the requirements of the "sandbox". Becoming a successful sandbox participant does not mean obtaining any recognition or supervision from the HKMA or other financial regulatory agencies. Sandbox participants who intend to apply for a license in the future must still submit separate applications to the HKMA in accordance with the future regulatory system.