Reserve Dollar

Bank AI

Read

<p class="is-style-lead">The UAE and Hong Kong central banks join forces to enhance regulatory frameworks through collaborative efforts on financial infrastructure and digital assets legislation.</p>



<p>As the global cryptocurrency industry gains prominence, various countries have been actively working towards regulating this emerging asset class.</p>



<p>While the US has adopted a <a href="https://crypto.news/lawyer-explains-whats-next-in-us-crypto-regulation/">stricter stance</a>, characterized by increased scrutiny and unclear guidelines, Hong Kong, Japan, and the UAE have taken proactive steps to establish comprehensive rules and compliance measures for crypto businesses.</p>



<h2 class="wp-block-heading" id="uae-and-hong-kong-collaborate-for-crypto-regulation">UAE and Hong Kong collaborate for crypto regulation</h2>



<p>On May 30, the Central Bank of the UAE (CBUAE) and the Hong Kong Monetary Authority (HKMA) <a href="https://www.hkma.gov.hk/eng/news-and-media/press-releases/2023/05/20230530-5/" target="_blank" rel="noopener">held a bilateral meeting</a> in Abu Dhabi, focusing on collaborative initiatives related to financial infrastructure, financial market connectivity, and cryptocurrency regulations.</p>



<p>During the meeting, both central banks engaged in discussions on key areas of cooperation and agreed to prioritize joint fintech development initiatives and knowledge-sharing efforts within their respective jurisdictions.</p>



<div class="cn-block-related-link">

    <svg class="cn-block-related-link__icon icon" aria-hidden="true">
        <use xlink:href="#icon-bookmark"></use>
    </svg>

    
        <span class="cn-block-related-link__prefix">
            You might also like:
        </span>

    
    
        <a href="https://crypto.news/reserve-bank-of-india-expands-digital-rupee-pilot-program/" class="cn-block-related-link__link">
            Reserve Bank of India expands digital rupee pilot program        </a>

    
</div>


<p>To operationalize the agreed-upon initiatives, a joint working group led by the CBUAE and HKMA will be formed, with the support of relevant stakeholders from the banking sectors of both jurisdictions. This collaborative effort aims to effectively implement regulatory measures for businesses such as cryptocurrency exchanges, crypto mining facilities, and <a href="https://crypto.news/learn/crypto-lending-defi/">DeFi lending</a> platforms.</p>



<p>H.E. Khaled Mohamed Balama, Governor of the CBUAE, expressed optimism regarding the long-term nature of the relationship with the HKMA. Similarly, Eddie Yue, Chief Executive of the HKMA, highlighted the economic benefits of the partnership, citing complementary strengths and mutual interests between the two jurisdictions.</p>



<figure class="wp-block-image size-full is-resized"><img decoding="async" loading="lazy" src="https://crypto.news/app/uploads/2023/05/Screenshot-39.png" alt="UAE and Hong Kong central banks collab on bolstering crypto regulations - 1" class="wp-image-14163603" width="911" height="571"><figcaption class="wp-element-caption">CBUAE governor H.E. Khaled Mohamed Balama (left) pictured with HKMA chief executive Eddie Yue (right) at a meeting on May 29 | Source: <a href="https://www.hkma.gov.hk/eng/news-and-media/press-releases/2023/05/20230530-5/" target="_blank" rel="noopener">HKMA</a></figcaption></figure>



<h2 class="wp-block-heading" id="strong-exploring-cross-border-trade-and-investment-opportunities-strong"><strong>Exploring cross-border trade and investment opportunities</strong></h2>



<p>Following the bilateral meeting, the CBUAE and HKMA, along with senior executives from banks in the UAE and Hong Kong, conducted a seminar to explore key opportunities for collaboration.</p>



<p>The seminar focused on facilitating better <a href="https://crypto.news/uae-central-bank-rolls-out-cbdc-strategy/">cross-border trade settlement</a>, enabling UAE corporates to leverage Hong Kong&#8217;s financial infrastructure platforms for enhanced access to Asian and Mainland markets, and exploring financial and investment solutions and crypto market opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area.</p>



<h2 class="wp-block-heading" id="strong-crypto-exchanges-eye-hong-kong-8217-s-growing-market-strong"><strong>Crypto exchanges eye Hong Kong&#8217;s growing market</strong></h2>



<p>The collaboration between the two central banks coincides with the Securities and Futures Commission (SFC) of Hong Kong<a href="https://crypto.news/huobi-to-expand-trading-service-into-hong-kong-crypto-market/"> allowing virtual asset service providers (VASPs) </a>to cater to retail investors starting June 1.</p>



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="China Drops Crypto Bombshell! June 1st Changes Everything For Bitcoin" width="1020" height="574" src="https://www.youtube.com/embed/PcA0mjL_oVg?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
</div></figure>



<p>Hong Kong&#8217;s treasury chief, Christopher Hui, <a href="https://news.yahoo.com/crypto-stay-must-regulated-hong-153549204.html?guccounter=1" target="_blank" rel="noopener">emphasized </a>the city&#8217;s acceptance of cryptocurrencies under its new regulatory regime, citing their inherent value and the need for regulated activities to harness their positive aspects.</p>



<p>The collaboration news has attracted interest from cryptocurrency exchanges, including CoinEx, Huobi, and OKX, which have submitted applications to<a href="https://crypto.news/okx-expands-services-to-hong-kong-enabling-spot-trading/"> offer dedicated crypto trading services </a>in Hong Kong since the SFC announced the application process.</p>



<p>As the partnership between the UAE and Hong Kong central banks progresses, it is expected to lay the foundation for enhanced regulatory frameworks, fostering a conducive environment for the growth and development of digital assets and financial technology in both jurisdictions.</p>



<div class="cn-block-related-link">

    <svg class="cn-block-related-link__icon icon" aria-hidden="true">
        <use xlink:href="#icon-bookmark"></use>
    </svg>

    
        <span class="cn-block-related-link__prefix">
            Read more:
        </span>

    
    
        <a href="https://crypto.news/best-performing-crypto-in-may-2023/" class="cn-block-related-link__link">
            Best performing crypto in May 2023        </a>

    
</div>

UAE and Hong Kong central banks collab on bolstering crypto regulations

Table of Contents

crypto.news

Other articles published on May 31, 2023

Are Stablecoins the Most Useful Crypto?

Cake Group’s U-Zyn Chua on the future of blockchain tech

New turmoil swings Indian crypto exchanges in balance

Paxful announces new interim CEO

Brazil's President Lula Calls for Non-Dollar Trading Currency

Japan’s All Nippon Airways ventures into NFTs

Join our free newsletter for daily crypto updates!