May 31, 2023

UAE, Hong Kong Central Banks Tackle Cooperation in Cryptocurrency Regulation

UAE, Hong Kong Officials

UAE, Hong Kong Officials

The Central Banks of the UAE and Hong Kong discussed cooperation in cryptocurrency regulations and financial technology development, according to Cointelegraph

The Central Bank of the UAE (CBUAE) and the Hong Kong Monetary Authority (HKMA) held a bilateral meeting in Abu Dhabi as they tackled bolstering cooperation in the areas of financial infrastructure, financial market connectivity between the two jurisdictions, and virtual asset regulations and developments. A joint working group had been formed to follow up on what the two parties agreed on. 

During the meeting, Governor of the CBUAE Khaled Mohamed Balama said the bank is keen on establishing a longstanding engagement with the HKMA and the Hong Kong financial services sector more broadly and cooperating in the areas of mutual interests. 

Meanwhile, Chief Executive of the HKMA Eddie Yue noted: “Hong Kong and the UAE are two financial centers sharing many complementary strengths and mutual interests, and there is much room for market participants from these two places to work together and build up the connectivity.”

Following the meeting, senior executives from the two banks held a seminar, during which they discussed improving the cross-border trade settlements and ways for helping UAE corporations to benefit from Hong Kong’s financial infrastructure platforms.

Both the UAE and Hong Kong are considered pioneering crypto hubs. In addition, the two countries work on building mBridge, a new blockchain that supports multiple CBDCs and aims to tackle the limitations of today’s cross-border payment systems. It also ensures compliance with jurisdiction-specific policy and legal requirements, regulations, and governance needs. The project’s pilot phase includes real corporate transactions.

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