Collaboration between the central banks of Hong Kong and the UAE on developing fintech regulations
Jun 1, 2023 04:58 UTC
Jun 1, 2023 at 04:58 UTC
The two central banks stated that they share “many complementary strengths” and are working to harmonize their financial services sectors.
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 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”.
Key topics covered included financial market connectivity and financial infrastructure between the two jurisdictions.
Governor of the CBUAE, H.E. Khaled Mohamed Balama, stated that he expects the partnership with the HKMA to be continuing and lasting.
Both jurisdictions will benefit economically from the cooperation, according to HKMA Chief Executive Eddie Yue, as they have “many complementary strengths and mutual interests.”
Following the meeting, senior executives from banks in Hong Kong and the UAE attended a seminar hosted by the two central banks.
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.
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.
HKMA Treasury Chief: “Crypto is here to stay.”
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 carries with it 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.