Both Hong Kong and the United Arab Emirates (UAE) have strengthened ties after their respective Central Banks (CBUAE) and Monetary Authorities (HKMA) joined forces on crypto regulation earlier this week.
The parties held a meeting in Abu Dhabi on Monday to “enhance cooperation between the financial services sectors of the two jurisdictions”. Press release From HKMA published yesterday.
Topics discussed included financial infrastructure, financial market connectivity between the two regions, and “virtual asset regulations”.
The two central banks discussed “joint fintech development initiatives and knowledge sharing efforts” between their respective innovation centres.
The CBUAE and the HKMA have now formed a joint working group with support from the banking sectors in each region to take those initiatives forward.
In a statement, His Excellency Khalid Mohamed Balama, Governor of the CBUAE, said he looked forward to a “long-term engagement with the HKMA” on such matters as:
“During the day’s discussions, we explored deeper cooperation in a number of important areas, including the development of financial market infrastructure and mutual opportunities for growth in digitization and technological advances.”
Following the meeting, the two central banks held a seminar with major banks from both regions, including Abu Dhabi Islamic Bank, HSBC, Bank of China and others.
Besides discussing capital market opportunities and financial market infrastructure, the symposium addressed “arrangements to facilitate better cross-border trade settlement”.
Central banks have often credited cryptocurrencies for providing a faster and more cost-effective means of global money transfer.
Russia, for example – whose president signed a law To put restrictions on Crypto for commercial payments last year – remained open to using crypto for international trade, despite its potentialinfected“Russian Economy.
Hong Kong’s Crypto Ambitions
However, Hong Kong’s crypto ambitions go beyond international trade: the territory’s Financial Secretary Paul Chan Mo-po confirmed last month that it aims to become a fully regulated DeFi and Web3 hub that attracts startup investors.
Largest online bank in the region announced In April it confirmed that it would start facilitating conversions between crypto and fiat currencies. Earlier this week, the Huobi crypto exchange Confirmed that it will open a crypto trading service for retail and institutional clients in Hong Kong from this week.
Meanwhile, crypto leaders have started praise of The United Arab Emirates to provide a more welcoming environment to the blockchain industry than the United States.
Eddie Yu, Chief Executive of the HKMA, said, “Hong Kong and the UAE are two financial centers that share many complementary strengths and mutual interests, and there is plenty of room for market participants from these two locations to work together and build connectivity ”