Hong Kong and UAE central banks collaborate on crypto regulations, fintech development

Hong Kong and the United Arab Emirates (UAE) central banks are looking to cooperate on cryptocurrency regulations and fintech development.

On 30 May, the Hong Kong Monetary Authority (HKMA) Said It met with its counterparts at the Central Bank of the United Arab Emirates (CBUAE), with both agreeing to “strengthen cooperation” on “virtual asset regulations and development”.

The two central banks also resolved to facilitate discussions on “joint fintech development initiatives and knowledge-sharing efforts” with the respective innovation hubs of each region.

Financial infrastructure and financial market connectivity between the two jurisdictions were also noted as key points of discussion.

His Excellency Khalid Mohamed Balama, Governor of CBUAE, said that he hopes the relationship with HKMA will be sustained and long-term.

Eddie Yu, chief executive of the HKMA, said the relationship would benefit both countries economically as they share “many complementary strengths and mutual interests”.

Following the meeting, the two central banks held a seminar for senior executives of banks in Hong Kong and the United Arab Emirates.

It covered a variety of topics, including how cross-border trade settlement could be improved and explored how UAE corporations could establish Hong Kong to gain access to Asian and mainland markets. leverage the financial infrastructure platform of

The collaboration comes as Hong Kong’s Securities and Futures Commission (SFC) is allowing virtual asset service providers (VASPs) to cater to retail investors in Hong Kong from June 1.

Crypto ‘is here to stay’: HKMA Treasury chief

Meanwhile, on May 30, Hong Kong Treasury chief Christopher Hui Said AFP that the city has allowed retail investors to trade crypto under its new regulatory regime because “virtual assets are going to stay.”

Hui claimed that the benefits of using cryptocurrencies outweigh the risks.

Connected: Hong Kong to Open Crypto Exchange Access to Retail Users, But There’s a Catch

“Despite the potential risks,[virtual assets]also carry with them fundamental value,” he said, noting the importance of regulation:

“So to harness these positive elements, these activities have to be permitted in a regulated manner.”

Several cryptocurrency exchanges have filed applications for dedicated Hong Kong crypto trading services since the SFC announced the application process, including Coinex, Huobi and OKEx.

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