Breaking: Hong Kong & UAE Join Forces To Regulate Cryptocurrencies

Crypto News: As the global crypto industry gains prominence, several countries have been proactively working towards regulating this new asset class. While the United States has taken a stricter stance, characterized by crackdowns, scrutiny and unclear regulatory guidelines, countries like Hong Kong, Japan, and UAE have taken steps to establish clear rules and compliance measures for crypto businesses. Now, the UAE and Hong Kong are seen to be joining forces to further enhance their regulatory frameworks and foster increased collaboration in the virtual asset sector.

UAE & Hong Kong Coact For Crypto Regulations

On May 30, the Central Bank of the United Arab Emirates (CBUAE) and the Hong Kong Monetary Authority (HKMA) held a bilateral meeting in Abu Dhabi which focused on various collaborative initiatives, with a particular emphasis on financial infrastructure, financial market connectivity and cryptocurrency regulations.

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During the bilateral meeting, the CBUAE and the HKMA engaged in discussions on key areas of cooperation. The central banks agreed to focus on major areas of finance and even initiated discussions on joint fintech development initiatives and knowledge-sharing efforts within their jurisdictions.

To operationalize the agreed-upon initiatives, a joint working group, led by the CBUAE and HKMA and with the support of relevant stakeholders from the banking sectors of both jurisdictions, will be formed. This collaborative effort aims to facilitate the effective implementation of regulatory measures for businesses including, crypto exchanges, crypto mining facilities and DeFi lending platforms.

Fintech Development And Knowledge Sharing

Following the bilateral meeting, the CBUAE and the HKMA, accompanied by senior executives from banks in the UAE and Hong Kong, conducted a seminar to explore key opportunities for collaboration.

The seminar centered around discussions on facilitating better cross-border trade settlement, enabling UAE corporates to leverage Hong Kong’s financial infrastructure platforms for enhanced access to Asian and Mainland markets, and exploring financial and investment solutions, as well as crypto market opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area.

While expressing satisfaction with the meeting, H.E. Khaled Mohamed Balama, Governor of the CBUAE, was quoted as saying:

We are pleased to have welcomed the Hong Kong Monetary Authority and its delegation to the UAE as we look to build on our central banks’ existing and robust relations.

Echoing similar sentiments, Mr. Eddie Yue, Chief Executive of the HKMA, highlighted the significance of the collaborative events, stating, “These events enhanced the collaboration between the central banks of Hong Kong and the UAE in a number of important areas and provided a platform for financial institutions and corporates from Hong Kong and the UAE to step up exchange and collaboration.”

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