UAE and Hong Kong to coordinate on crypto rules, authorities anticipate the relationship to be ongoing & long-term
Hong Kong and the UAE agree to set rules for crypto companies, eyes big on further development in their respective financial sectors.
cryptocurrency
Highlights
- From crypto rules to cross border trade, major financial and technical issues were discussed among Hong Kong and the UAE
- Both the countries discussed areas related to infrastructure, finance and crypto companies inclusion
On 30 May, in Abu Dhabi, officials from the central banks of Hong Kong and the United Arab Emirates held a bilateral meeting to talk about cryptocurrency legislation and the advancement of financial technology.
The Central Bank of the United Arab Emirates (CBUAE) and the Hong Kong Monetary Authority (HKMA) have decided to work on strengthening their ties over virtual asset regulations and developments.
BREAKING: 🇭🇰 Hong Kong and 🇦🇪 UAE Central Banks Unveil Groundbreaking Partnership for #Crypto Regulations 🔥
— Keyur Rohit (@CryptoKingKeyur) May 31, 2023
A thread 🧵 pic.twitter.com/lHfE71IA9J
Discussion held on financial and crypto related growth
The two central banks also decided to encourage discussions on collaborative fintech growth initiatives and coordinated knowledge-sharing efforts with each region’s respective innovation centres.
In the current collaboration, the governor of the CBUAE , H.E. Khaled Mohamed Balama, stated his relationship with HKMA to be long-term and ongoing.
On this occasion, HKMA’sChief Executive, Eddie Yue, said that the relationship will help both nations economically since they share many "complementary strengths and mutual interests." The discussion further covered a wide range of subjects, including how to make cross-border settlement better.
Both the nations collectively discussed the idea to make cross-border trade easier while exploring ways to allow companies in the UAE to use Hong Kong’s financial infrastructure platforms to access markets in mainland China and Asia.
The UAE was represented by banks such First Abu Dhabi Bank, Abu Dhabi Islamic Bank, and Emirates NBD. At the same time, Bank of China, Citi, HSBC, and Standard Chartered came from Hong Kong’s side.
Various crypto companies keen on entering the UAE and Hong Kong market
In May 2023, Hong Kong announced to lift a ban from crypto trading for retail clients from 1 June along with including crypto friendly measures.
Moreover, in Hong Kong, licensed digital asset firms will be able to provide services to regional traders from June. Huobi, Gate Group, OKX, and BitMEX, are among the four major firms in the cryptocurrency sector that have shown interest in entering the Hong Kong market.
Among the companies that have signalled ambitions to join the UAE are Komainu, OKX, and Binance. On Wednesday, the central bank of the Emirates released recommendations for preventing money laundering across its local crypto sector.
In Dubai alone, there were more than 500 cryptocurrency startups as of January 2023. The Virtual Assets Regulatory Authority (VARA) was established by the city in March 2022 to safeguard investor protection and control cryptocurrency trades.
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