Hong Kong and UAE to Collaborate on Crypto Rules

[ad_1]

The central banks of Hong Kong and the United Arab Emirates recently met in Abu Dhabi to find ways to work together, with the two jurisdictions positioning themselves as crypto-friendly nations.

During their meeting, the banks agreed to strengthen cooperation on crypto regulations (which they call virtual assets). The two authorities say they will now set up a joint task force.

After their meeting, senior executives from banks in the United Arab Emirates and Hong Kong held a seminar to discuss opportunities between their jurisdictions, according to a statement.

They discussed ways to facilitate cross-border trade and explored how UAE companies can use Hong Kong’s financial infrastructure platforms to access markets in Asia and mainland China.

Hong Kong and the United Arab Emirates are two financial centers sharing many complementary strengths and mutual interests, and there is plenty of room for market players in these two places to work together and strengthen connectivity, said Eddie Yue, Director general of the HKMA.

Banks such as First Abu Dhabi Bank, Abu Dhabi Islamic Bank and Emirates NBD represented the UAE. Meanwhile, Bank of China, Citi, HSBC and Standard Chartered showed up in Hong Kong.

Crypto Firms Seem Eager for Hong Kong and UAE

May was a busy month for Hong Kong. Part of the city-state’s crypto-friendly measures include ending its ban on retail crypto trading.

From June, licensed digital asset companies will be able to offer services to local merchants. Major players in the crypto industry like Huobi, Gate Group, OKX, and BitMEX have recently shown interest in joining the Hong Kong market.

In a similar vein, the United Arab Emirates said its federal securities regulator is now accepting applications from companies interested in providing crypto-related services, with the exception of asset companies. already operating in financial free zones.

In January, Dubai itself was home to over 500 crypto startups. To provide investor protection and regulate crypto transactions, the city launched the Virtual Assets Regulatory Authority (VARA) in March 2022.

Komainu, OKX and Binance are among the companies that have signaled their intention to enter the UAE. The emirates central bank issued guidelines on Wednesday on how to prevent money laundering in its local crypto sector.

Get the best crypto news and insights delivered to your inbox every night. Subscribe to Blockworks’ free newsletter now.

Want the alpha sent straight to your inbox? Get degenerate business insights, governance updates, token performance, can’t-miss tweets and more with Blockworks Researchs daily debrief.

Can’t wait? Receive our news as soon as possible. Join us on Telegram and follow us on Google News.

[ad_2]