The financial authorities of Hong Kong and the United Arab Emirates are working on the crystallization of a joint regulatory framework for the use of cryptocurrencies.
In the search for alternative financial mechanisms to the US dollar, both regions have been expanding the adoption of cryptocurrencies as a means of payment.
Likewise, they are studying the launch of a central bank digital currency, CBDC, that allows fast, secure transactions and with less expensive processes.
One step in this direction is the decision taken last April by the United Arab Emirates Securities and Commodities Authority to allow cryptocurrency companies to apply for licenses for their operations.
One of the first companies to do so was the Hong Kong asset custody company Hex Trust.
Both regions have also advanced in blockchain technology, fintech platforms, Web3, among others. In parallel, Hong Kong and the United Arab Emirates have been working on an mBridge, a new blockchain that supports multiple CBDCs and seeks to address limitations in current cross-border payment systems.
(Reference image source: Kanchanara, Unsplash)