Hong Kong and United Arab Emirates conclude crypto-regulatory agreement

Central banks want to join hands to work on regulation of the crypto sector. To that end, representatives from both sides met in Abu Dhabi.

Hong Kong and the United Arab Emirates have decided to work closely on the regulation and developments of virtual assets. The Central Bank of the United Arab Emirates (CBUAE) and the Hong Kong Monetary Authority (HKMA) met May 29 to discuss cooperation between the financial sectors of the two jurisdictions.

The two central banks want to align their financial services sectors. In addition, the parties discussed "mutual growth opportunities in digitalization and technological advancement" during the meeting in Abu Dhabi.

Joint working group

To implement the agreed interests, a joint working group will be formed under the leadership of the CBUAE and the HKMA with the support of relevant stakeholders from the banking sectors of both jurisdictions.

"Hong Kong and the UAE are two financial centers with many complementary strengths and common interests.", informed Eddie Yue, Chief Executive of the HKMA.

Hong Kong is currently working on crypto-friendly regulations. From June 1, trading in cryptocurrencies there will be allowed for retail investors.