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China and the United Arab Emirates pledge to jointly crack down on cryptocurrency-related crimes
China and the United Arab Emirates (UAE) have pledged to strengthen their cooperation in combating cybercrime associated with cryptocurrencies.
The latest commitment was made with an official communication on May 30th joint statement following the state visit of UAE President Mohammed bin Zayed Al Nahyan to China.
The announcement comes alongside data from Hong Kong Shows a spike in crypto fraud activity between 2022 and 2023.
The joint statement highlighted specific areas of concern, including fraud in telecommunications networks and online gambling. Both nations aim to curb illegal activities that could exploit cryptocurrencies, demonstrating a shared determination to tackle these issues.
In addition to focusing on cybercrime, China and the UAE have highlighted their commitment to cybercrime fight against money laundering, human trafficking, drug trafficking and illegal immigration. This broader effort addresses illicit financial flows that may involve digital assets.
While the statement does not outline specific regulations regarding cryptocurrency, it indicates a coordinated approach by both countries to address the potential misuse of cryptographic technologies.
Beyond security concerns, the statement highlights the importance of supporting bilateral trade and investment partnerships. Both nations are committed to promoting trade, facilitating investment and developing tourism through the Joint Economic and Trade Committee.
A notable aspect of the joint statement was the recognition of central bank digital currency (CBDC) in enhancing cross-border trade and investment. China and the United Arab Emirates expressed their commitment to deepening bilateral and multilateral cooperation under the Memorandum of Understanding on Strengthening Cooperation on Central Bank Digital Currency, signed by their central banks.
China praised the UAE for its pioneering effort in completing the first direct cross-border CBDC transaction, the “Digital Dirham”, worth 50 million dirhams through the “Multilateral Central Bank Digital Currency Bridge (mBridge)” platform.
The landmark transaction opened up new opportunities for trade and investment between the two nations.
Like before reported from crypto.news the 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 United Arab Emirates, together with the HKMA, are developing mBridge, a cross-border central bank digital currency initiative.
This project is expected to launch by mid-2024 and could provide an alternative to Swift’s dominant payments infrastructure, potentially leading to further fragmentation of payments in other regions.
HKMA is also working on another CBDC-related project known as e-HKD.
The digital currency has demonstrated various use cases, including payments, deposits, and investment scenarios.