According to Odaily, the Hong Kong Monetary Authority (HKMA) recently revealed the list of participants for its stablecoin issuance 'sandbox.' The initial group includes three institutions that will test applications in payment, supply chain management, and capital markets. Deputy Secretary for Financial Services and the Treasury, Joseph Chan, stated that alongside the existing virtual asset trading platform regulatory framework, a licensing system for fiat-backed stablecoin issuers will be established. This move aims to align Hong Kong's virtual asset regulatory framework with international standards. The system includes a transition period, allowing issuers with significant and substantive business operations to continue operating for six months after the system takes effect, provided they submit a license application within the first three months. Failure to do so will require them to orderly cease operations by the end of the fourth month. The authorities will also enhance investor education and information dissemination.

Legislative Council member Johnny Ng noted that the government's stance on virtual asset regulation is clear and well-directed. However, he observed that some regulations might involve different government departments, such as the HKMA, the Securities and Futures Commission, and potentially customs in the future. Ng expressed hope that Hong Kong could soon perfect its Web3 and virtual asset development and regulatory framework. He also anticipates that the government will publish a comprehensive Web3 development roadmap and a sustainable development plan within this year, which would help guide the industry. Ng highlighted that many internationally successful Web3 companies have recently come to Hong Kong and are currently in a 'burning money' phase. He believes that a clear government roadmap will boost overseas investors' confidence in developing in Hong Kong.

Legislative Council member Duncan Chiu commented on the HKMA's launch of the stablecoin issuance 'sandbox' in March this year, noting that the recent announcement of the first three participating institutions has raised concerns about transparency in the application process, such as the sandbox's duration and the timeline for formal licensing. Chiu believes that many issues remain unresolved before formal licensing, including virtual asset custody and intermediaries. He hopes the authorities will prepare in advance. Chiu also pointed out that many companies have issued stablecoins in other regions and questioned whether the authorities would consider these internationally experienced companies in the next round of the sandbox.