The central banks of Hong Kong and the United Arab Emirates (UAE) are working together to align their financial sectors and collaborate on cryptocurrency regulations and fintech development.
HKMA chief executive Eddie Yue (fifth right) and CBUAE governor H.E. Khaled Mohamed Balama (fifth left) pictured with Hong Kong and UAE bank executives. Source: HKMA
On May 30, the Hong Kong Monetary Authority (HKMA) announced that it had a meeting with the Central Bank of the United Arab Emirates (CBUAE) to enhance cooperation in virtual asset regulations and developments.
The central banks also agreed to facilitate discussions on joint fintech initiatives and knowledge-sharing efforts through their respective innovation hubs.
During the meeting, the financial infrastructure and market connectivity between the two jurisdictions were highlighted as important topics of discussion. CBUAE governor H.E. Khaled Mohamed Balama expressed his expectation for an ongoing and long-term relationship with the HKMA.
According to HKMA chief executive Eddie Yue, the relationship between the two jurisdictions will bring economic benefits as they possess many complementary strengths and mutual interests. After the meeting, the central banks organized a seminar for senior executives from banks in Hong Kong and the UAE.
During the seminar, several topics were discussed, including ways to enhance cross-border trade settlement and how UAE corporations can utilize Hong Kong’s financial infrastructure platforms to access Asian and mainland markets.
This collaboration is happening at a time when the Hong Kong Securities and Futures Commission (SFC) has decided to permit virtual asset service providers (VASPs) to serve retail investors in Hong Kong starting from June 1.
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According to Hong Kong’s treasury chief Christopher Hui, the city has permitted retail investors to trade cryptocurrencies because they believe that virtual assets are here to stay. Hui stated that the advantages of using cryptocurrencies outweigh the potential risks.
“Hong Kong’s treasury chief, Christopher Hui, stated that they allowed retail investors to trade cryptocurrencies because they believe virtual assets will remain and offer more benefits than risks.”
Hui highlighted that virtual assets, despite their risks, hold intrinsic value. He emphasized the significance of regulation, stating that in order to benefit from the positive aspects of virtual assets, these activities need to be allowed in a controlled manner.
“Hui emphasized that virtual assets have value but also carry risks. He stressed the importance of regulation to harness the positive aspects of these assets.”
Since the SFC (Securities and Futures Commission) introduced the application process, several cryptocurrency exchanges like CoinEx, Huobi, and OKX have submitted applications to offer specialized crypto trading services in Hong Kong. “CoinEx, Huobi, and OKX are among the cryptocurrency exchanges that have applied to provide dedicated crypto trading services in Hong Kong following the announcement of the application process by the SFC.”
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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