According to Shenchao TechFlow, the Hong Kong Monetary Authority has launched a distributed ledger technology regulatory incubator to assist banks in responsibly exploring the potential of DLT, with the aim of effectively managing related risks.
The incubator will enhance the banking industry's risk management capabilities, particularly in services involving DLT and traditional banking infrastructure. The incubator provides a one-stop regulatory platform to help banks implement risk management measures before launching DLT projects.
The incubator will also introduce measures to promote awareness of best practices in DLT risk management within the banking industry, including regulatory guidelines, industry sharing sessions, and research projects, to enhance the banking sector's capacity to adopt DLT solutions.
