The Hong Kong Financial Authority (HKMA) and the Central Financial institution of the United Arab Emirates (CBUAE) have introduced their plans to collaborate on cryptocurrency rules and monetary expertise growth. In a gathering held on Might 30, the 2 central banks agreed to strengthen cooperation within the areas of digital asset rules and developments.
The collaboration goals to facilitate discussions on joint fintech growth initiatives and data sharing between the respective innovation hubs of Hong Kong and the UAE. Key subjects mentioned included monetary infrastructure, monetary market connectivity, and enhancing commerce settlement throughout borders.
CBUAE Governor H.E. Khaled Mohamed Balama expressed his anticipation for an ongoing and long-term relationship with the HKMA, whereas HKMA Chief Govt Eddie Yue highlighted the financial advantages that each areas can achieve from their shared strengths and mutual pursuits.
As a part of the collaboration, a seminar was organized for senior executives from banks in Hong Kong and the UAE, overlaying numerous topics corresponding to bettering cross-border commerce settlement and exploring how UAE companies can leverage Hong Kong’s monetary infrastructure platforms to entry Asian and mainland markets.
Hong Kong rules
This collaboration comes because the Securities and Futures Fee (SFC) of Hong Kong plans to permit digital asset service suppliers (VASPs) to cater to retail traders ranging from June 1. Hong Kong’s treasury chief, Christopher Hui, emphasised town’s dedication to permitting retail traders to commerce crypto underneath a regulated regime, recognizing the lasting significance of digital belongings.
With the constructive elements of using cryptocurrencies outweighing the dangers, Hui careworn the significance of regulation to harness their potential worth in a regulated method. Notably, a number of cryptocurrency exchanges, together with CoinEx, Huobi, and OKX, have already filed functions to supply devoted crypto buying and selling companies within the nation because the SFC initiated the applying course of.