#Hong Kong Monetary Authority Launches DLT Regulatory Sandbox#

The DLT Regulatory Sandbox launched by the Hong Kong Monetary Authority (HKMA) aims to help banks responsibly adopt distributed ledger technology (DLT). The Sandbox will provide a one-stop regulatory platform for banks to confirm that they have implemented appropriate risk management measures before fully launching DLT projects, and to engage with the HKMA's dedicated team for regulatory advice. The Sandbox will also introduce a series of initiatives to promote awareness and understanding of DLT risk management best practices among the banking industry, including regulatory guidance, industry sharing sessions, and forward-looking research projects, to enhance the industry's ability to adopt DLT solutions. The Sandbox will enhance the risk management capabilities of individual banks and the banking industry as a whole, particularly in relation to risks that may arise when banks launch services (such as deposits and loans) that involve both DLT banking infrastructure and traditional banking infrastructure. By providing opportunities for real-world testing, the Sandbox will help banks validate and refine their risk management measures in a practical and iterative manner, ultimately promoting innovation and development in Hong Kong's financial industry.