The UAE and Hong Kong central banks be a part of forces to reinforce regulatory frameworks by way of collaborative efforts on monetary infrastructure and digital property laws.
As the worldwide cryptocurrency business positive factors prominence, numerous nations have been actively working in direction of regulating this rising asset class.
Whereas the US has adopted a stricter stance, characterised by elevated scrutiny and unclear pointers, Hong Kong, Japan, and the UAE have taken proactive steps to ascertain complete guidelines and compliance measures for crypto companies.
UAE and Hong Kong collaborate for crypto regulation
On Could 30, the Central Financial institution of the UAE (CBUAE) and the Hong Kong Financial Authority (HKMA) held a bilateral meeting in Abu Dhabi, specializing in collaborative initiatives associated to monetary infrastructure, monetary market connectivity, and cryptocurrency rules.
In the course of the assembly, each central banks engaged in discussions on key areas of cooperation and agreed to prioritize joint fintech improvement initiatives and knowledge-sharing efforts inside their respective jurisdictions.
To operationalize the agreed-upon initiatives, a joint working group led by the CBUAE and HKMA shall be shaped, with the help of related stakeholders from the banking sectors of each jurisdictions. This collaborative effort goals to successfully implement regulatory measures for companies equivalent to cryptocurrency exchanges, crypto mining amenities, and DeFi lending platforms.
H.E. Khaled Mohamed Balama, Governor of the CBUAE, expressed optimism relating to the long-term nature of the connection with the HKMA. Equally, Eddie Yue, Chief Government of the HKMA, highlighted the financial advantages of the partnership, citing complementary strengths and mutual pursuits between the 2 jurisdictions.
Exploring cross-border commerce and funding alternatives
Following the bilateral assembly, the CBUAE and HKMA, together with senior executives from banks within the UAE and Hong Kong, performed a seminar to discover key alternatives for collaboration.
The seminar targeted on facilitating higher cross-border trade settlement, enabling UAE corporates to leverage Hong Kong’s monetary infrastructure platforms for enhanced entry to Asian and Mainland markets, and exploring monetary and funding options and crypto market alternatives within the Guangdong-Hong Kong-Macao Better Bay Space.
Crypto exchanges eye Hong Kong’s rising market
The collaboration between the 2 central banks coincides with the Securities and Futures Fee (SFC) of Hong Kong allowing virtual asset service providers (VASPs) to cater to retail buyers beginning June 1.
Hong Kong’s treasury chief, Christopher Hui, emphasized town’s acceptance of cryptocurrencies underneath its new regulatory regime, citing their inherent worth and the necessity for regulated actions to harness their constructive elements.
The collaboration information has attracted curiosity from cryptocurrency exchanges, together with CoinEx, Huobi, and OKX, which have submitted functions to offer dedicated crypto trading services in Hong Kong for the reason that SFC introduced the appliance course of.
Because the partnership between the UAE and Hong Kong central banks progresses, it’s anticipated to put the inspiration for enhanced regulatory frameworks, fostering a conducive surroundings for the expansion and improvement of digital property and monetary expertise in each jurisdictions.