February 22, 2024

Hong Kong and UAE to Collaborate on Crypto Rules

Hong Kong and UAE to Collaborate on Crypto Rules:

The United Arab Emirates and Hong Kong have officially announced their collaboration on crypto regulations. The representatives of the Central Banks of Hong Kong and UAE recently met in Abu Dhabi, where both jurisdictions agreed to position themselves as nations that are crypto-friendly. During the meeting, both central banks agreed to strengthen their cooperation on crypto regulations. Due to this cooperation, a joint working group will be established for both countries to explore opportunities in crypto regulation.

Hong Kong and UAE also discussed possible commercial opportunities and options for collaboration. Given that both countries are booming financial hubs, there are undoubtedly endless opportunities for cross-border trade and mutual commercial interests. According to the Hong Kong Monetary Authority (HKMA), the agreement will provide ample opportunity for both countries to share complementary strengths and mutual interests. The Authority also stated that there is enough room for market participants from both countries to work together and collaborate to enhance connectivity.

Hong Kong’s Booming Crypto Ecosystem

The past few months have been particularly eventful for the crypto community in Hong Kong. This is because Hong Kong has reconsidered its ban on retail crypto trading. The ban lift was officially executed earlier this month, and many individual and institutional investors have been converging to take advantage of the new crypto investment freedom in Hong Kong. Since crypto trading is no longer banned, licensed digital asset firms will be able to offer their services to local traders in the country. In fact, two exchanges have officially been registered by the Hong Kong Securities and Futures Commission (SFC), with exchanges like Huobi and OKX announcing that they will equally file applications with the Commission for the launch of their services in Hong Kong.

UAE’s Journey with Crypto

The UAE is one of the few countries that has embraced and actively encouraged the development of the crypto ecosystem. The country recently announced that it had started accepting licensing applications for cryptocurrency companies to operate in its territory. The applications will be received through the UAE Securities and Commodities Authority. Also, the UAE government has stated that the mandatory licensing regime covers all virtual asset providers in the country, except companies that have been licensed under the country’s financial free zones. Applicants will only be allowed to offer crypto services after the Authority may have given its approval.

It seems that the collaboration between Hong Kong and UAE is well-timed. Given that Hong Kong only recently lifted its ban on crypto services, it needs to learn licensing and regulation measures from experienced jurisdictions. Since the UAE has been licensing crypto for quite some time, the country is in the best position to collaborate with Hong Kong on the latter’s crypto drive.

Bottom Line

Hong Kong’s move to regulate and embrace crypto trading will likely trigger a host of international collaborations. Thus, there is a high chance that Hong Kong will collaborate with more countries to ensure that its crypto regulatory framework meets global standards.

Last Updated on 2 months by newseditor

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