According to statements, the two central banks share "many complementary strengths" and want to align their financial services sectors.
The central banks of Hong Kong and the United Arab Emirates (UAE) are looking to work together on cryptocurrency regulations and the development of financial technology.
According to the Hong Kong Monetary Authority (HKMA), the two organizations met on May 30 and agreed to "strengthen cooperation" on "virtual asset regulations and developments."
The two national banks additionally promised to work with conversations on "joint fintech advancement drives and information sharing endeavors" with every locale's separate development centers.
The connectivity of the financial markets between the two jurisdictions and their financial infrastructure were also noted as important points of discussion.
CBUAE lead representative H.E. Khaled Mohamed Balama said he expects the relationship with the HKMA to progress over the long haul.
HKMA CEO Eddie Yue said the relationship will help the two wards financially as they share "numerous correlative qualities and common interests."
A seminar for senior executives from Hong Kong and UAE banks was held by the two central banks following the meeting.
It looked at how to improve cross-border trade settlement and how UAE companies can use Hong Kong's financial infrastructure platforms to get into Asian and mainland markets, among other things.
The partnership comes as virtual asset service providers (VASPs) will be permitted to serve retail investors in Hong Kong by the Securities and Futures Commission (SFC) on June 1.
Cryptocurrency will "stay": HKMA depository boss
In the interim, on May 30, Hong Kong's depository boss, Christopher Hui, let the AFP know that the city has permitted retail financial backers to exchange crypto under its new administrative system on the grounds that "virtual resources will remain."
Hui asserted that the advantages of using digital currencies outweigh the dangers.
Related: Hong Kong to open crypto trade access for retail clients, however there's a trick
"Notwithstanding the potential dangers implied, (virtual resources) likewise convey with them crucial worth," he said, noticing the significance of the guideline:
"Consequently, these activities must be permitted in a regulated manner for these positive elements to be harnessed."
Since the SFC announced the application process, cryptocurrency exchanges have submitted applications for dedicated Hong Kong crypto trading services.
(CIARAN LYONS, Cointelegraph, 2023)