The central banks of Hong Kong and UAE join forces to bolster financial cooperation and collaborate on regulating virtual assets, aiming to enhance regulatory frameworks and promote fintech development.
Abu Dhabi hosts a bilateral meeting to discuss financial infrastructure and cross-border trade settlements, fostering cooperation between the two entities.
Hex Trust, a Hong Kong-based crypto custodian, became one of the first firms to receive a license from the UAE’s Securities and Commodities Authority, following their recent decision to permit crypto companies to apply for operating licenses.
Finoverse, a fintech and Web3 platform with offices in Hong Kong and Dubai, anticipates increased collaboration between the regions in the field of blockchain technology.
The emphasis on cross-border trade settlements by the two central banks could facilitate the utilization of central bank digital currencies, offering faster transfers, reduced costs, and potentially diminishing dependence on the U.S. dollar.
The Central Bank of the UAE intensifies its plans for a digital dirham, with the initial phase of the CBDC strategy projected to be finalized within a year.
UAE and Hong Kong collaborate on mBridge, a blockchain platform enabling multiple CBDCs and addressing cross-border payment system limitations. The successful trial includes real corporate transactions, showcasing the potential of the technology.
CoinEx, Huobi, and OKX are among the cryptocurrency exchanges that have submitted applications for dedicated crypto trading services in Hong Kong, following the application process initiated by the SFC.
Also Read: Crypto Trading Now Available in Hong Kong with Huobi HK
The collaboration between Hong Kong and the UAE central banks, along with their efforts in fintech development, regulation of virtual assets, and exploration of CBDCs, showcases their progressive approach towards enhancing financial cooperation and embracing innovative technologies.
