The central bank of Hong Kong and the United Arab Emirates (UAE) are seeking cooperation in cryptocurrency regulation and fintech development.
On May 30, the Hong Kong Monetary Authority (HKMA) said it had met with its counterpart from the Central Bank of the United Arab Emirates (CBUAE), and both agreed to “enhance cooperation” in “law and development in virtual infrastructure”.
The two central banks also promised to support discussions on “cooperation fintech development strategies and efforts to share knowledge” in each region’s innovation sector. Financial infrastructure and financial market linkages between the two regions were identified as key factors to consider.
Governor of CBUAE H.E. Khaled Mohamed Balama said he looks forward to a long-term relationship with the HKMA. HKMA CEO Eddie Yue said the partnership would benefit both regions economically, as they share “many complementary strengths and common interests”.
After the meeting, the two central banks held a meeting for executives from Hong Kong and UAE banks.
It covered a variety of topics, including how to improve cross-border trade arrangements and explore how UAE companies can leverage Hong Kong’s financial infrastructure to tap into the Asian market on the continent. The partnership comes as the Hong Kong Securities and Futures Commission (SFC) authorized value-added service providers (VASPs) to serve the needs of retail investors in Hong Kong from June 1.
Meanwhile, Hong Kong’s chief financial officer Christopher Hui told the French news agency Agence France-Presse on May 30 that the city has allowed investors to sell cryptos under the new government, because “wealth will last”.
Hui said that the benefits of using cryptocurrencies outweigh the risks. “Despite the risks, (virtual assets) also carry major benefits,” he said, stressing the importance of regulation:
“Therefore, in order to exploit the good things, it is necessary to leave the works in a fixed way.”
Several cryptocurrency exchanges have applied to acquire dedicated crypto trading services in Hong Kong since the SFC announced the application process, including CoinEx, Huobi and OKX.
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