Cryptocurrency crimes continue to be a major concern for crypto users all over the world. Hacks rug pulls are becoming popular. Hence, many crypto holders are wary of falling victim to these crimes. China and the United Arab Emirates (UAE) are strengthening their cooperation in combating cryptocurrency cybercrime.
UAE and China Partnership Implications
UAE and China are determined to curb illegal activities that might exploit cryptocurrencies, indicating a promising future for enhanced security measures. This agreement was announced in a joint statement following UAE President Mohammed bin Zayed Al Nahyan’s state visit to China.
Additionally, the two countries emphasized their dedication to fighting money laundering, human trafficking, drug trafficking, and illegal immigration. This broader effort reflects a comprehensive approach to addressing illicit financial flows that could involve digital assets.
Although the statement did not specify regulations targeting cryptocurrency, it highlighted a coordinated approach by both countries to address potential misuse of crypto technologies.
This partnership reminds us of the importance of supporting bilateral trade and investment partnerships. \China and the UAE expressed their commitment to deepening bilateral and multilateral cooperation under the Memorandum of Understanding on Strengthening Central Bank Digital Currency Cooperation, signed by their central banks.
Central Bank Digital Currency (CBDC)
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 paved the way for new trade and investment opportunities between the two nations, setting a precedent for future collaborations.
China’s Central Bank Digital Currency (CBDC)
China’s Hong Kong Monetary Authority (HKMA) is already working on two CBDC-related projects, MBridge and e-HKD. The central banks of Hong Kong, China, Thailand, and the UAE, in collaboration with the HKMA, are developing mBridge. mBridge is a cross-border central bank digital currency initiative.
This project, expected to launch by mid-2024, could provide an alternative to Swift’s dominant payment infrastructure, potentially leading to further payment fragmentation across other regions. Additionally, the HKMA is working on another CBDC-related project known as e-HKD.
Final Words
Many countries are embracing cryptocurrencies in their economy. Additionally, countries are working on or have their own CBDC. Unfortunately, the increased use of cryptocurrencies has led to constant cryptocurrency crimes. Hence, China and the UAE have partnered to reduce these crimes.
Frequently Asked Questions
What is China Coin Cryptocurrency?
China is set to release a coin, and CBDC called digital yuan, e-yuan, or e-rmb.
Does UAE Support Crypto?
Yes, the UAE supports crypto.
Is Binance Legal in the UAE?
Yes, Binance is legal in the UAE
Can I Cash Out Crypto in the UAE?
Yes, you can cash out from crypto in the UAE.
Is Bitcoin Illegal in Dubai?
No, Bitcoin is not illegal in Dubai.
Which Country banned Cryptocurrency recently?
Countries that banned cryptocurrency include China, Iraq, Kuwait, etc
Which is the Best Crypto Wallet in the UAE?
Some of the best crypto wallets in the UAE are Trust Wallet, MetaMask, etc.
What App does Dubai use to Buy Bitcoin?
You can buy Bitcoin in Dubai on Binance, Crypto.com, etc.
