Key Takeaways:
- The central banks of Hong Kong and the United Arab Emirates want to work together to develop cryptocurrency regulations.
- Key topics covered included financial market connectivity and financial infrastructure between the two jurisdictions.
The central banks of Hong Kong and the United Arab Emirates (UAE) want to work together on developing financial technology and laws for cryptocurrencies.
The Central Bank of the United Arab Emirates (CBUAE) and the Hong Kong Monetary Authority (HKMA) met on May 30, according to the HKMA, and the two decided to strengthen their collaboration on “virtual asset regulations and developments.”
The two central banks also promised to promote discussions with each region’s respective innovation centers regarding cooperative fintech development initiatives and “knowledge-sharing efforts.”
Key topics covered included financial market connectivity and financial infrastructure between the two jurisdictions. The Governor of the CBUAE, H.E. Khaled Mohamed Balama, stated that he expects the partnership with the HKMA to be ongoing and lasting.
Following the meeting, senior executives from banks in Hong Kong and the UAE attended a seminar hosted by the two central banks. Both jurisdictions will benefit economically from the cooperation, according to HKMA Chief Executive Eddie Yue, as they have “many complementary strengths and mutual interests.” Eddie Yue also stated:
“These events enhanced the collaboration between the central banks of Hong Kong and the UAE in a number of important areas and provided a platform for financial institutions and corporates from Hong Kong and the UAE to step up exchange and collaboration.”
It discussed a variety of subjects, such as how to enhance cross-border trade settlement and how UAE firms might use Hong Kong’s financial infrastructure platforms to access Asian and Chinese markets.
A collaborative working group will be established to operationalize the agreed-upon objectives. It will be led by the CBUAE and HKMA and supported by pertinent players from the banking sectors in both countries. This cooperative effort intends to make it easier for businesses, such as cryptocurrency exchanges, crypto mining facilities, and DeFi lending platforms, to execute regulatory requirements effectively.
The Securities and Futures Commission (SFC) of Hong Kong will allow virtual asset service providers to cater to Hong Kong’s retail investors as of June 1. The collaboration fits with this. However, the SFC has not approved any platforms for trading virtual assets with retail investors.
Beijing’s city government has published a white paper to encourage innovation and expand the Web3 industry. The white paper emphasizes Beijing’s objective to hasten technological advancements to promote the growth of the Web3 industry.
