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Hong Kong and UAE join hands to regulate digital currency

Hong Kong and the United Arab Emirates (UAE) central banks collaborated to work together on the advancement of financial technology and virtual currency laws.

The Central Bank of the United Arab Emirates (CBUAE) and the Hong Kong Monetary Authority (HKMA) met on May 30 and both institutions decided to “enhance cooperation” on digital currency regulations and advancements.”

Hong Kong and UAE join hands to regulate crypto
Hong Kong and UAE join hands to regulate crypto

The two central banks also promised to assist the regional innovation centres in conversations regarding “joint financial technology development initiatives and knowledge-sharing efforts”.

One of the main topics covered was the interconnection of the financial markets between the two nations.

Governor of the CBUAE, H.E. Khaled Mohamed Balama, stated that he expects the partnership with the HKMA to be continuing and lasting.

Both nations will benefit economically from the cooperation, according to HKMA Chief Executive Eddie Yue, as they have “many complementary qualities and similar ambitions.”

After the conference, top representatives from banks in Hong Kong and the UAE attended an event hosted by the two central banks.

It discussed a variety of subjects, such as how to enhance cross-border trade transaction and how UAE firms might use Hong Kong’s the banking system platforms to access Asian and Chinese markets.

As of June 1, Hong Kong’s Securities and Futures Commission (SFC) will permit cryptocurrency service providers (VASPs) to serve retail investors in Hong Kong.

According to Christopher Hui, the head of Hong Kong’s treasury, its government allows retail investors to trade cryptocurrencies under its new legal structure because “digital currency are going to stay.”

According to Hui, using the virtual currency has more advantages than disadvantages.

Despite the inherent risks, virtual assets still have fundamental worth, according to Chu, emphasising the significance of legislation:

Therefore, these activities must be permitted in a controlled manner in order to fully utilise these positive qualities.

Since the SFC launched the application procedure, a number of digital currency exchanges have submitted proposals to offer specific Hong Kong crypto trading services, including CoinEx, Huobi, and OKX.



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