According to Foresight News, Hong Kong Monetary Authority (HKMA) Deputy Chief Executive Eddie Yue has stated that there is no limit set on the number of participants in the regulatory sandbox. Considering the characteristics and proposed regulatory requirements of stablecoins, specific requirements have been set for participation in the sandbox, including applicants needing to demonstrate a genuine intention and reasonable plan to issue fiat stablecoins in Hong Kong, having a concrete plan for participating in the sandbox, and being able to meet the proposed regulatory requirements with reasonable expectations. The HKMA will consider a range of factors, such as the application scenarios proposed by the applicants, price stability mechanisms, reserve asset management, and user protection, to assess their applications and maintain communication with the applicants during the process.
Sandbox participants are required to comply with relevant terms and regulations, and the HKMA can terminate a participant's eligibility if any non-compliance with sandbox requirements is found. Successfully becoming a sandbox participant does not imply any approval or regulation from the HKMA or other financial regulatory authorities. Sandbox participants intending to apply for a license in the future will still need to submit a separate application to the HKMA according to the regulatory regime implemented at that time.
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