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- 1 Higher authorities of the Central Banks of UAE and Hong Kong held a bilateral talk for better crypto rules.
- 2 Hong Kong to the brink of becoming global crypto heaven for crypto-focused companies.
The Central Banks of the United Arab Emirates and Hong Kong are looking to partner on cryptocurrency regulations and the betterment of financial technology. The partnership will help strengthen the rules and infrastructure of the financial market.
On May 30, 2023, the Hong Kong Monetary Authority announced that it held a meeting with the Central Bank of Emirates and agreed to work together to strengthen the financial market and structure appropriate cryptocurrency regulations.
Both the national central banks committed to facilitating discussion on collaborative fintech development programs and knowledge sharing with each region’s respective innovation hubs.
The financial market connective and traditional financial infrastructure were two significant points discussed in the bilateral meeting. The H.E Khaled Mohamed Balama, governor of UAE central bank, said he foresees the relationship with HKMA will be ongoing and long-term.
Edie Yue, the Chief Executive of the Hong Kong Monetary Authority, claims that the partnership will benefit both jurisdictions economically because they share numerous complementary strengths and mutual interests.
After concluding the bilateral meeting, both central banks organized a seminar for the bank’s senior executives in the respective regions to streamline the process and apply the changes discussed in the bilateral meeting.
Some of the major topics discussed in the meeting were how to improve cross-border trade settlements and how the UAE can use the financial infrastructure of Hong Kong financial to reach Asian and mainland land markets.
It is believed that the partnership materialized after Hong Kong expressed keen interest in allowing virtual asset providers to cater to retail investors beginning from June 1, 2023.
After this step in Hong Kong, numerous crypto exchanges rushed towards the region to register themselves in the region and start operating after gaining approval from monetary authorities.
The Hong Kong-based crypto exchange, CoinEx, signals its entry into the city by launching BitHK. It is a professional crypto trading platform serving Hong Kong users. This announcement was made on May 29.
Despite China’s Ban Hong Kong to Become New Crypto Hub
China banned cryptocurrency usage in 2021; despite this, Hong Kong is constantly working to develop the best crypto infrastructure in the region to lure crypto-focused companies to relocate to Hong Kong.
Hong Kong is one of China’s two Special Administrative Regions (SAR) and is looking to exploit its unique legal system and markets to become a hub for the cryptocurrency industry. Hong Kong was China’s first test of open markets in the 20th century.
At press time, the leader of all cryptocurrencies, Bitcoin, was trading at $27,095 with a 24-hours trading volume of $15,409,052,563. BTC prices improved 14.02% in quarterly trading sessions, up over 59% in half-yearly trading sessions.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
