The Central Bank of the United Arab Emirates (CBUAE) and the Hong Kong Monetary Authority (HKMA) held a meeting on May 30, 2023, to discuss collaboration in the development of financial technology and cryptocurrency regulations. The goal of this meeting was to strengthen cooperation and provide the groundwork for collaborative efforts in virtual asset legislation and financial market relationships in both jurisdictions.
According to a press release from the Hong Kong Monetary Authority, both central banks have agreed to strengthen their collaboration on virtual asset regulations and improve financial market connectivity and infrastructure between their regions. The institutions also discussed establishing joint fintech development initiatives and knowledge-sharing efforts to foster innovation centers in both regions.
Chief Executive Eddie Yue of the HKMA asserted that the collaboration would yield economic benefits because both jurisdictions possess complementary strengths and mutual interests.
In addition to the meeting, senior executives from banks in Hong Kong and the UAE participated in a seminar organized by both central banks. The seminar covered various topics, including strategies to enhance cross-border trade settlement and opportunities for UAE companies to leverage Hong Kong’s financial infrastructure platforms for accessing Asian and Chinese markets.
In another development, Christopher Hui, the head of Hong Kong’s treasury, expressed his support for the new legal framework announced by the Securities and Futures Commission (SFC) of Hong Kong, stating that individual investors in the city will now have the opportunity to engage in cryptocurrency trading.
In a statement released on May 23, 2023, the SFC announced that it would allow regulated platforms to provide support for local retail investors. The proposed regulations will require these platforms to fulfill certain criteria, encompassing various aspects of their operations, including security standards for asset custody, segregation of client assets, and cybersecurity measures. The regulator urged owners of virtual asset trading platforms to apply for a license if they are willing to comply with the proposed regulations, as operations have been set to kick off on June 1, 2023.
In an interview with the French news agency Agence France-Presse on May 30, 2023, Hui stressed that “virtual assets are going to stay” because the advantages of using Bitcoin outweigh the disadvantages.
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