The central banks of Hong Kong and the United Arab Emirates (UAE) have announced their collaboration on cryptocurrency regulations and fintech development. The Hong Kong Monetary Authority (HKMA) and the Central Bank of the United Arab Emirates (CBUAE) expressed their intention to strengthen cooperation in virtual asset regulations and developments. They also aim to foster joint fintech initiatives and knowledge-sharing efforts through their respective innovation hubs.

The discussions between the two central banks also focused on enhancing financial infrastructure and financial market connectivity between Hong Kong and the UAE. Both parties acknowledged the complementary strengths and mutual interests that exist between their jurisdictions, anticipating long-term benefits from the collaboration.

The collaboration aligns with Hong Kong’s upcoming initiative to allow virtual asset service providers (VASPs) to cater to retail investors starting from June 1. The city’s treasury chief, Christopher Hui, emphasized that virtual assets are here to stay and acknowledged their fundamental value while highlighting the importance of regulation.

As a result of these developments, several cryptocurrency exchanges, such as Huobi, and OKX, have submitted applications to provide dedicated crypto trading services in Hong Kong.

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