
China and the United Arab Emirates (UAE) have pledged to strengthen their cooperation in combating cybercrime linked to cryptocurrency.
This commitment was formalized in an official joint statement on May 30, following the state visit of UAE President Mohammed bin Zayed Al Nahyan to China.
The announcement follows data from Hong Kong indicating a surge in crypto fraud activity between 2022 and 2023.
The collaborative declaration highlighted particular areas of focus, such as telecommunications network scams and internet-based betting. Both nations aim to curtail illegal activities that may exploit cryptocurrencies, demonstrating a shared resolve to tackle these issues.
Beyond cybercrime, China and the UAE highlighted their commitment to combating money laundering, human trafficking, drug trafficking, and illegal immigration. This broader initiative addresses illicit financial flows that could involve digital assets.
While the statement did not detail specific regulations targeting cryptocurrency, it signaled a coordinated approach by both countries to address the potential misuse of crypto technologies.
Beyond security concerns, the statement underscored the importance of bolstering bilateral trade and investment partnerships. Both countries pledged to enhance commerce, encourage investments, and foster tourism via the Joint Economic and Trade Committee.
A notable aspect of the joint statement was the acknowledgment of the role of central bank digital currency (CBDC) in improving cross-border trade and investment. China and the UAE reiterated their dedication to strengthening bilateral and multilateral collaboration through the Memorandum of Understanding on Enhancing Central Bank Digital Currency Cooperation, a pact endorsed by their respective central banks.
China commended the UAE for its pioneering achievement in completing the first direct cross-border CBDC transaction, the “Digital Dirham,” valued at 50 million dirhams, through the “Multilateral Central Bank Digital Currency Bridge (mBridge)” platform.
This milestone transaction has created new opportunities for trade and investment between the two nations.
According to prior reports from crypto.news, the Hong Kong Monetary Authority (HKMA) has initiated work on two CBDC-related initiatives, namely mBridge and e-HKD.
The central banks of Hong Kong, China, Thailand, and the UAE, in collaboration with the HKMA, are developing mBridge, a cross-border central bank digital currency initiative.
This project is anticipated to launch by mid-2024 and may offer an alternative to Swift’s dominant payment infrastructure, potentially leading to further payment fragmentation across various regions.
Moreover, the HKMA is actively engaged in developing an additional CBDC-related initiative titled e-HKD.
The digital currency has showcased a variety of use cases, including payments, deposits, and investment scenarios.
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