The Hong Kong Legislative Council’s relevant bill committee is currently reviewing the “Stablecoin Bill.” Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), stated that he hopes the bill will be passed by the Legislative Council this year. Following this, the HKMA will issue regulatory guidelines to explain how the regulations will interpret the law, including details on how issuers can conduct their businesses. The authority will also implement the system in a timely manner, opening up applications for licenses to interested participants.

Yue revealed that since the launch of the stablecoin issuer sandbox last year, the HKMA has received over 40 applications and accepted three participants into the sandbox. The authority has also conducted tests within the sandbox to understand the use of stablecoins in Hong Kong, both locally and globally.

Yue emphasized that participating in the sandbox is not a prerequisite for applying for a stablecoin license. Sandbox participants will still need to submit formal applications. He encouraged all stakeholders interested in issuing stablecoins in Hong Kong to contact and discuss with the HKMA.