Hong Kong and the United Arab Emirates have announced plans to regulate cryptocurrencies
The central banks of Hong Kong and UAE allied to bolster financial cooperation and collaborate on regulating cryptocurrencies, aiming to enhance regulatory frameworks and promote fintech development. Abu Dhabi hosts a bilateral meeting to discuss financial infrastructure and cross-border trade settlements, fostering cooperation between the two entities.
Key topics discussed included financial infrastructure, financial market connectivity, and enhancing trade settlement across borders. This collaboration comes as the Securities and Futures Commission (SFC) of Hong Kong plans to allow virtual asset service providers (VASPs) to cater to retail investors starting from June 1.
As part of the collaboration, a seminar was organized for senior executives from banks in Hong Kong and the UAE, covering various subjects such as improving cross-border trade settlement and exploring how UAE corporations can leverage Hong Kong’s financial infrastructure platforms to access Asian and mainland markets.
According to AI monitor, The meeting comes amid growing relations between the UAE and China. The following is a list of some notable developments involving Emirati and Chinese entities recently:
- China purchased 65,000 tons of liquified natural gas from the UAE in March using China’s currency, the yuan. This was the first time China used the yuan for an energy deal with the UAE.
- In April, the China International Capital Corporation told Bloomberg it plans to expand in the UAE and Saudi Arabia. The corporation conducts investment banking, wealth management, and other related services.
- The UAE and China signed several nuclear energy cooperation agreements in May.
- The Dubai-based logistics giant DP World signed deals in May with two Chinese ports on the automobile industry chain.
- The UAE and Kuwait became dialogue partners of the China-led Shanghai Cooperation Organization in May.
Read more: https://www.al-monitor.com/originals/2023/05/uae-cooperate-hong-kong-fintech-crypto-china-ties-grow#ixzz83Gy2ZrVX
“We are delighted to welcome the Hong Kong Monetary Authority and its delegation to the UAE, as we aspire to build on our central banks’ existing and robust relations,” said H.E. Khaled Mohamed Balama, Governor of the CBUAE. “During today’s discussions, we explored intensifying collaboration across several key areas, including financial market infrastructure development and mutual opportunities for growth in digitization and technological advancement.”
H.E. Balama added, “We anticipate a longstanding engagement with the HKMA and the broader Hong Kong financial services sector. We will continue collaborating with and exchanging knowledge in these areas of mutual interest.”
Eddie Yue, the Chief Executive of HKMA, stated, “These events have enhanced collaboration between the central banks of Hong Kong and the UAE in several crucial areas, providing a platform for financial institutions and corporations from both regions to augment exchange and collaboration. Hong Kong and the UAE, as financial centers, share many complementary strengths and mutual interests. There is ample scope for market participants from both places to collaborate and build connectivity.”
Yue added, “We look forward to continued collaboration with the CBUAE, increased exchange between the financial sectors of Hong Kong and the UAE, and welcome the visit of UAE stakeholders to Hong Kong shortly.”