May 08, 2025
By Anjali Kochhar
What happens when two financial powerhouses join forces in the middle of a global crypto shake-up? The world watches. In a dramatic pivot, Hong Kong has not only lifted its ban on crypto staking for retail investors but has also inked a powerful alliance with the United Arab Emirates (UAE) a move set to reshape the global digital asset landscape.
The Securities and Futures Commission (SFC) of Hong Kong has officially allowed licensed Virtual Asset Service Providers (VASPs) to offer staking services to retail users under the city’s upcoming stablecoin and virtual asset regulations. This reversal of the previous ban is seen as a step toward building a more inclusive and competitive crypto environment.
At the same time, the Hong Kong Monetary Authority (HKMA) and the Central Bank of the UAE (CBUAE) convened in Abu Dhabi to explore deeper cooperation in regulating virtual assets and boosting fintech development. The result was the formation of a joint working group that will focus on knowledge sharing, aligning regulations, and exploring infrastructure opportunities that can strengthen financial ties between the two economies.
Eddie Yue, Chief Executive of the HKMA, described the partnership as a win-win, pointing out the complementary strengths of both jurisdictions. UAE’s central bank governor H.E. Khaled Mohamed Balama also expressed optimism, highlighting the long-term vision behind the collaboration and the shared ambition to lead in digital finance innovation.
A seminar following the bilateral talks brought together major banking institutions from both sides including HSBC, Bank of China, First Abu Dhabi Bank, and Emirates NBD to discuss smoother cross-border transactions and greater access to Asia’s markets via Hong Kong’s financial infrastructure. These efforts aim to facilitate UAE corporations in expanding their presence across Asia through stronger financial integration.
This twin move reopening retail staking and aligning with the UAE comes as both regions compete to attract top-tier crypto companies and investors. While the UAE has already made headlines with its proactive regulatory body, VARA, Hong Kong is signaling it won’t be left behind in the race for crypto leadership.
This isn’t just policy it’s a power move. By embracing retail staking and aligning with a forward-looking partner like the UAE, Hong Kong is sending a clear message to the world: it’s no longer playing catch-up it’s here to lead. In a space where innovation waits for no one, this bold partnership could mark the beginning of a new crypto order, with Hong Kong and the UAE writing the next chapter.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
