The central banks of the United Arab Emirates (UAE) and Hong Kong, plan to implement a newly developed set of regulations for financial technology development and cryptocurrency. The two banks are setting sights on marshalling their financial service sectors and said both share “many complementary strengths.”
On May 30, the Hong Kong Monetary Authority (HKMA) issued a statement regarding its meeting with the central bank of the United Arab Emirates (CBUAE). Reportedly both entities came in accordance to enrich collaboration in the area of virtual asset regulations and advancements.
Additionally, the central banks committed to fostering discussions on joint initiatives for fintech development and exchanging knowledge through their respective innovation hubs. Furthermore, they zeroed in on the importance of strengthening financial infrastructure and establishing financial market connectivity between their jurisdictions.
The governor of CBUAE, H.E. Khaled Mohamed Balama foresees a long-term relationship with the HKMA. Likewise, HKMA chief executive Eddie Yue said the relationship will benefit both jurisdictions economically as they share “many complementary strengths and mutual interests.”
Subsequent to the meeting, a seminar was conducted, targeting senior executives from banks based in both Hong Kong and the UAE. The seminar encompassed a range of subjects, such as enhancing cross-border trade settlement and examining ways for UAE corporations to utilize Hong Kong’s financial infrastructure platforms, thereby enabling them to tap into Asian and mainland markets.
the collaboration emerges as the Securities and Futures Commission (SFC) of Hong Kong permits virtual asset service providers (VASPs) to serve retail investors within the region, effective from June 1st.
Hong Kong’s treasury chief Christopher Hu stated that the city has allowed retail investors to trade crypto under its new regulatory regime because “virtual assets are going to stay.” Hui also commented that the advantages of utilizing cryptocurrencies outweighed the associated risks.
