The Hong Kong Monetary Authority (HKMA) and the Central Bank of the United Arab Emirates (CBUAE) have agreed to collaborate on cryptocurrency regulation and financial technology development, a move welcomed by experts, who say it is a positive development for the global cryptocurrency industry.
Speaking with Benzinga, industry stalwarts say that this move is a sign that regulators are beginning to recognize the potential benefits of cryptocurrencies and are willing to work with industry participants to develop a regulatory framework that will promote innovation and growth in this emerging market.
“Seeing two of the world’s top financial centers investing their time and efforts to mature the crypto market, and making it safer, is a clear sign to all who are still uncertain about the bright, important, and great future of the crypto market,” said Mohammed AlKaff AlHashmi, co-founder of Islamic Coin
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He added that it was a great step in promoting crypto adoption and securing the first movers’ advantage for the two countries.
Ilman Shazhaev, a Dubai-based techpreneur and founder & CEO of Farcana, said that the crypto regulatory landscape soared to a whole new dimension when the Central Banks of Hong Kong and the United Arab Emirates agreed to join forces to regulate the digital currency ecosystem.
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“While both countries are known crypto hubs in their own rights, the synergy of regulatory strategies can further help bolster the nascent industry’s development to attract investors to both areas,” Shazhaev said.
He further said the move indicates that global regulators are following events in the industry and are committed to positioning themselves to help drive institutional embrace.
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While the duo of Hong Kong and the UAE are pioneering this initiative, we can expect more countries to join the bandwagon in the mid to long term, according to Shazhaev.
Details Of The Collaboration:
- The HKMA and CBUAE will work together to develop a common framework for regulating cryptocurrencies.
- The two central banks will also share information and best practices on financial technology.
- The collaboration is expected to help to promote innovation and growth in the global cryptocurrency industry.
Greg Waisman, co-founder and COO at the global payments infrastructure platform Mercuryo, said the agreement between the two countries is setting a good precedent for the industry as it shows “the ideals of crypto are universal, and the laws can be uniform across the board.”
Didar Bekbauov, Founder and CEO of Bitcoin group mining company Xive, said, “The partnership to provide regulations to the industry is deemed a unique case as both Hong Kong and UAE are progressive as it concerns crypto regulations.”
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