Members of the Hong Kong Legislative Council have expressed concerns about the stablecoin sandbox program launched by the Hong Kong Monetary Authority (HKMA), especially its transparency and licensing procedures. Legislator Zhao Dawen pointed out that the lack of clear information on the launch time of the sandbox and the expected duration of the formal license has raised doubts about the regulation of stablecoin issuers.

The HKMA launched the stablecoin sandbox test in March and has selected three groups of institutions for the first round of testing. Although Hong Kong hopes to become a global center for virtual assets and Web3 technology, transparency issues may hinder the realization of this goal.

The Ministry of Finance is developing a regulatory plan for stablecoin issuers and plans to submit proposed regulations to the Legislative Council by the end of the year to accelerate implementation. Deputy Director Chen Haolian emphasized that the licensing system for stablecoins will be consistent with international standards and set a six-month transition period for issuers with existing businesses.

In addition, legislator Wu Jiezhuang called on the government to publish a Web3 development roadmap to enhance investor confidence and provide guidance to the industry.

Meanwhile, the Hong Kong Stock Exchange will launch Asia's first Bitcoin inverse product on July 23, simultaneously with the launch of the US spot Ethereum ETF. The product aims to provide sophisticated investors with a new short-term trading or hedging tool.