The Hong Kong Monetary Authority (HKMA) and the Central Bank of the United Arab Emirates (CBUAE) have joined forces to regulate virtual assets and promote the development of financial technology. On May 30, the two banking authorities announced their intention to solidify their cooperation on these crucial areas.
Shared Interests Foster Collaboration
The banking heads of both jurisdictions decided to promote discussions on shared fintech development initiatives and efforts to exchange knowledge with their respective innovation hubs. The financial infrastructure and the connectivity of financial markets between the two regions were highlighted as essential topics of discussion.
Khaled Mohamed Balama, the CBUAE governor, voiced his anticipation for a long-term, ongoing relationship with the HKMA. Eddie Yue, the chief executive of the HKMA, agreed, noting that the partnership would bring economic benefits to both jurisdictions, given their shared “strengths and mutual interests.”
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Educational Seminar for Banking Executives
Following the meeting, a seminar was organized for top executives from banks in Hong Kong and the UAE. It explored a wide range of topics, such as ways to improve cross-border trade settlement and strategies for UAE corporations to tap into Hong Kong’s financial infrastructure platforms for better access to Asian and mainland markets.
Crypto Is Here to Stay, Says HKMA Treasury Chief
On the same day, Hong Kong’s treasury chief, Christopher Hui, spoke to the AFP about the city’s decision to allow retail investors to trade crypto under its new regulatory regime. He stated that “virtual assets are going to stay,” adding that the advantages of using cryptocurrencies outweigh the associated risks.
Hui also said that while there are potential risks involved with virtual assets, they also hold fundamental value, making regulation vital. Since the announcement of the application process by the SFC, multiple cryptocurrency exchanges, including CoinEx, Huobi, and OKX, have submitted applications to provide dedicated Hong Kong crypto trading services.
