#Hong Kong Monetary Authority Launches DLT Regulatory Sandbox#
Hot Topic Overview
Overview
The Hong Kong Monetary Authority (HKMA) has recently launched a “Distributed Ledger Technology (DLT) Regulatory Sandbox” to help banks responsibly adopt DLT. The sandbox will provide a one-stop regulatory platform to assist banks in confirming that they have implemented adequate risk management measures before launching DLT projects, and to engage with the HKMA’s dedicated team for regulatory advice. In addition, the sandbox will promote the banking industry’s understanding of DLT risk management best practices through regulatory guidance, industry sharing sessions, and forward-looking research projects, ultimately enhancing the industry’s ability to adopt DLT solutions. The initiative aims to 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 involving both DLT banking infrastructure and traditional banking infrastructure.
Ace Hot Topic Analysis
Analysis
The DLT Regulatory Sandbox launched by the Hong Kong Monetary Authority (HKMA) aims to help banks responsibly apply distributed ledger technology (DLT) and effectively manage associated risks. The Sandbox will provide a one-stop regulatory platform for banks to confirm that they have fully implemented relevant risk management measures before fully launching DLT projects, engage with the HKMA's dedicated team to obtain regulatory advice, and choose to conduct real-world testing as needed to validate and refine risk management measures in a pragmatic and iterative manner. The Sandbox will also introduce a series of targeted measures to promote the banking industry's awareness and understanding of DLT risk management best practices, including regulatory guidance, industry sharing sessions, and forward-looking research projects, which will ultimately help enhance the banking 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 the risks that may arise when banks launch services (such as deposits and loans) that involve both DLT banking infrastructure and traditional banking infrastructure.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Hong Kong Monetary Authority launches DLT regulatory incubator to help banks responsibly explore the potential of DLT and effectively manage associated risks.
The incubator will enhance the risk management capabilities of individual banks and the banking industry as a whole, particularly risks that may arise when banks launch services (such as deposits and loans) that involve both DLT banking infrastructure and traditional banking infrastructure.
The incubator will provide a one-stop regulatory platform for banks to confirm that they have fully implemented relevant risk management measures before fully launching DLT projects, to engage with the HKMA's dedicated team and obtain regulatory advice, and to opt for live testing as needed.
The incubator will also launch a series of targeted measures to promote the banking industry's awareness and understanding of DLT risk management best practices, including regulatory guidance, industry sharing sessions and forward-looking research projects, which will ultimately help enhance the banking industry's ability to adopt DLT solutions.