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Hong Kong and UAE Central Banks Collaborate on Cryptocurrency Regulations, Fintech Development

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The central banks of Hong Kong and the United Arab Emirates (UAE) are seeking to collaborate on cryptocurrency regulation and financial technology development.

On May 30, the Hong Kong Monetary Authority (HKMA) explain It met with counterparts from the Central Bank of the United Arab Emirates (CBUAE), where the parties agreed to “enhance cooperation” on “virtual asset regulation and development.”

The two central banks also pledged to facilitate discussions on “joint fintech development plans and knowledge-sharing efforts” with each region’s respective innovation hub.

Financial infrastructure and financial market connectivity between the two jurisdictions was also considered a key point of discussion.

CBUAE Governor HE Khaled Mohamed Balama said he expected the relationship with the MAS to be sustained and long-term.

Hong Kong Monetary Authority CEO Eddie Yue (fifth from right) and CBUAE President HE Khaled Mohamed Balama (fifth from left) with Hong Kong and UAE bank executives. source: Hong Kong Monetary Authority

HKMA chief executive Eddie Yue said the relationship would benefit both jurisdictions economically as they share “many complementary strengths and common interests”.

Following the meeting, the central banks of the two countries held seminars for bank executives from Hong Kong and the UAE respectively.

It covers a variety of topics, including how to improve cross-border trade settlements and explores how UAE companies can use Hong Kong’s financial infrastructure platform to gain access to Asian and mainland markets.

CBUAE Governor HE Khaled Mohamed Balama (left) with Hong Kong Monetary Authority CEO Eddie Yue (right) At a meeting on May 29th. source: Hong Kong Monetary Authority

This cooperation is carried out with the permission of the Hong Kong Securities and Futures Commission (SFC) Virtual asset service provider (VASP) caters to retail investors in Hong Kong starting June 1.

Cryptocurrencies ‘are here to stay’: MAS treasury chief

Meanwhile, on May 30, Hong Kong Finance Minister Xu Zhiguo Tell The city has allowed retail investors to trade cryptocurrencies under its new regulatory regime because “virtual assets are here to stay,” AFP said.

Hui claimed that the benefits of using cryptocurrencies outweigh the risks.

related: Hong Kong Opens Up Crypto Exchange Access for Retail Users, But There’s a Problem

“Despite the potential risks, (virtual assets) also have fundamental value,” he said, noting the importance of regulation:

“Thus, to take advantage of these positives, these activities must be allowed in a regulated manner.”

Several cryptocurrency exchanges have submit application Since the Securities Regulatory Commission announced the application process, it has specialized Hong Kong cryptocurrency trading services, including CoinEx, Huobi and OKX.

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