Hong Kong And The UAE: A Collaboration

The central banks of HongKong and the United Arab Emirates (UAE) are collaborating on cryptocurrency regulations and fintech development. The Hong Kong Monetary Authority (HKMA) and the Central Bank of the UAE (CBUAE) have agreed to strengthen cooperation on virtual asset regulations and developments. They also plan to facilitate discussions on joint fintech initiatives and share knowledge through their respective innovation hubs. The discussions also touched upon financial infrastructure and market connectivity between the two regions.

This is a notable development. While the UAE has firmly established itself as a hub for crypto activity, Hong Kong has been making noise to attract attention to its growing regulatory friendliness to Web3 as well. it is heartening to see the two cities harmonise on this topic.

The UAE is much further ahead in its regulatory development for crypto than Hong Kong that is only taking its first few steps for now. but time will tell which jurisdiction offers the more beneficial and competitive framework for VASPs.

In particular, it is heartening indeed to see the CBUAE be at the centre of such discussions as CBUAE crypto regulations have been hotly anticipated for some time. Perhaps we can take this as a sign that the regulations we expect will be coming out soon!