Hong Kong Monetary Authority (HKMA) official website released the "2023 Annual Report", which includes the financial statements of foreign exchange funds and its "2023 Sustainable Development Report". The 2024 work focus and outlook section of the annual report includes encrypted assets (especially stablecoins), and the HKMA pointed out that public consultations on regulating stablecoin issuers will be conducted from December 2023 to February 2024. The HKMA will work with the government to promote relevant legislative work and will continue to communicate with different stakeholders in formulating and implementing relevant regulatory regimes, as well as paying attention to market developments and relevant international discussions. At the same time, the HKMA will implement a stablecoin "sandbox" arrangement to promote exchanges of views with the industry on proposed regulatory regimes and requirements, and to enhance the stability, cryptographic assets, and financial innovation of non-bank financial intermediaries. The HKMA will focus on virtual asset-related products and will refer to the latest market developments and revisions to international standards in the relevant processes. To promote sustainable and responsible development of the virtual asset industry, the HKMA will continue to work with the government and other regulatory agencies to ensure the establishment of a robust, comprehensive, and balanced regulatory framework for the virtual asset industry.