The Hong Kong Monetary Authority will soon launch a "sandbox" to test the issuance process and business model of stablecoins

ChainCatcher news, according to Ming Pao, Hong Kong's Financial Secretary Paul Chan disclosed in the latest "Budget" that the Hong Kong Monetary Authority will soon launch a "sandbox" to allow institutions intending to issue stablecoins to test the issuance process, business models, investor protection, and risk management systems within a controlled environment, as well as to communicate regarding future regulatory requirements.

Paul Chan also stated that the Hong Kong government established legislative proposals for the regulatory framework for stablecoin issuers at the end of last year, consulting public opinions, with the goal of creating a regulatory system that ensures financial stability while not hindering innovation.