The central banks of Hong Kong and the 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 cooperation” on “virtual asset regulations and developments.” The two central banks also promised to assist the regional innovation centers in conversations about “joint fintech development initiatives and knowledge-sharing efforts”.
The Central Bank of Hong Kong and the UAE
Governor of the CBUAE, H.E. Khaled Mohamed Balama, stated that he expects the partnership with the HKMA to be continuing and last. Eddie Yue, chief executive of the HKMA, claimed that because of their shared “many complementary strengths and mutual interests,” the cooperation will be economically advantageous to both countries.
Senior executives from banks in Hong Kong and the UAE attended a seminar hosted by the two central banks after the meeting. 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.
- UAE and HKMA strengthen cooperation on virtual asset regulations, fintech development, and knowledge-sharing.
- CBUAE, and HKMA partners for economic benefits, and shared strengths.
- Hong Kong and UAE bank executives discuss cross-border trade settlement, financial infrastructure.
As of June 1, Hong Kong’s Securities and Futures Commission (SFC) will permit virtual asset service providers (VASPs) to serve retail investors in Hong Kong. This coincides with the partnership.
Meanwhile, on May 30, Christopher Hui, the head of Hong Kong’s treasury, told the AFP that the city’s new legal framework permits individual investors to trade cryptocurrencies since “virtual assets are going to stay.” According to Hui, using bitcoins has more advantages than disadvantages.
He stated that “despite the potential risks involved, (virtual assets) also carry with its fundamental value,” highlighting the significance of regulation: Therefore, these activities must be permitted in a controlled manner in order to harness these positive qualities.
Since the SFC launched the application procedure, a number of cryptocurrency exchanges, including CoinEx, Huobi, and OKX, have submitted applications to offer specific Hong Kong cryptocurrency trading services.
