UAE and Hong Kong central banks to collaborate on crypto regulation

Eddie Yue, Chief Govt of the Hong Kong Financial Authority (proper), H.E. Khaled Mohamed Balama, Governor of the Central Financial institution of the United Arab Emirates (left) | Picture: Hong Kong Financial Authority

The Central Bank of the United Arab Emirates and the Hong Okong Monetary Authority (HKMA) agreed to strengthen cooperation in regulating virtual asunits during a bilateral meeting in Abu Dhabi on Monday.

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The 2 central banks are planning to type a joint working group to push ahead developments in crypto regulation. In keeping with a report by the HKMA launched Tuesday, the working group will concentrate on strengthening bilateral ties in areas together with monetary infrastructure and market connectivity.

“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,” mentioned HKMA chief government Eddie Yue.

The United Arab Emirates is taking an more and more proactive method in the direction of regulating crypto. In April, its regulators started accepting functions from cryptocurrency companies for working licenses within the area.

In the meantime, Hong Kong will roll out a brand new algorithm for its cryptocurrency sector on June 1. This regulatory framework will set up clear licensing requirements for digital belongings within the area.

“Hong Kong will more than likely become not just Asia’s crypto hub, but the de-facto crypto hub globally,” Vincent Chok, chief government officer of Hong Kong-based consultancy First Digital Belief, mentioned by way of e mail. “The U.S. is in a holding pattern with its regulation paralysis, and Dubai has ambitions to become a crypto hub, but in terms of innovation, Hong Kong still leads.”

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