The collaborative effort signals a shared commitment to promoting fintech innovation and fostering robust crypto regulations in both countries. The central banks of Hong Kong and the United Arab Emirates (UAE) have announced plans to join forces on the development of financial technology and cryptocurrency regulations.
On May 30, the Hong Kong Monetary Authority (HKMA) held discussions with its counterparts from the Central Bank of the United Arab Emirates (CBUAE).
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The two financial bodies agreed to “strengthen the cooperation” on “virtual asset regulations and developments,” signifying their shared vision of fostering a regulated and innovation-friendly environment for cryptocurrencies.
The HKMA and CBUAE also committed to holding conversations around “joint fintech development initiatives and knowledge-sharing efforts” within their respective innovation hubs. The strengthening of financial infrastructure and market connectivity between the two jurisdictions was also a key topic during these discussions.
H.E. Khaled Mohamed Balama, CBUAE governor, expressed optimism about the long-term partnership with the HKMA. Echoing this sentiment, HKMA chief executive Eddie Yue underscored that this collaboration would economically benefit both jurisdictions, leveraging their “many complementary strengths and mutual interests.”
This collaboration comes at a time when Hong Kong’s Securities and Futures Commission (SFC) is set to allow virtual asset service providers (VASPs) to cater to retail investors in Hong Kong starting from June 1st.
On May 30th, Christopher Hui, Hong Kong’s treasury chief, shared with the AFP that the city is embracing cryptocurrencies under its new regulatory regime because “virtual assets are going to stay.”
He emphasized the importance of harnessing the benefits of cryptocurrencies in a regulated manner, stating:
Despite the potential risks involved, (virtual assets) also carries with it fundamental value.
Several cryptocurrency exchanges, including CoinEx, Huobi, and OKX, have reportedly filed applications for dedicated Hong Kong crypto trading services since the SFC initiated the application process.
The collaboration between the central banks of Hong Kong and the UAE signifies a step forward in the global approach to cryptocurrency regulations and fintech development. The partnership could serve as a blueprint for other jurisdictions seeking to navigate the complexities of the burgeoning fintech and crypto landscape.