Bitcoin
China and UAE Vow Joint Crackdown on Cryptocurrency Crimes
China and the United Arab Emirates (UAE) have committed to strengthening their cooperation in combating cybercrime associated with cryptocurrency.
The last commitment was made through an official statement on May 30 joint statement following UAE President Mohammed bin Zayed Al Nahyan’s state visit to China.
The announcement comes as data from Hong Kong show an increase in crypto fraud activity between 2022 and 2023.
The joint statement highlighted specific areas of concern, including fraud on telecommunications networks and online gambling. Both nations intend to curb illegal activities that may exploit cryptocurrencies, demonstrating a shared determination to resolve these issues.
In addition to focusing on cybercrime, China and the UAE have highlighted their commitment to combating money laundering, human trafficking, drug trafficking and illegal immigration. This broader effort addresses illicit financial flows that may involve digital assets.
While the statement did not outline specific regulations targeting cryptocurrencies, it did indicate a coordinated approach by both countries to address the potential misuse of cryptographic technologies.
In addition to security concerns, the statement emphasized the importance of supporting bilateral trade and investment partnerships. Both nations committed to promoting trade, facilitating investment and developing tourism through the Joint Economic and Commercial Committee.
A notable aspect of the joint statement was the recognition of central bank digital currency (CBDC) in improving cross-border trade and investment. China and the UAE expressed their commitment to deepen bilateral and multilateral cooperation under the Memorandum of Understanding on Strengthening Central Bank Digital Currency Cooperation 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”, valued at 50 million dirhams through the “Multilateral Central Bank Digital Currency Bridge (mBridge)” platform.
The historic transaction opened new opportunities for trade and investment between the two nations.
As before reported by 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 in mid-2024 and could provide an alternative to Swift’s dominant payment infrastructure, potentially leading to greater fragmentation of payments in other regions.
The HKMA is also working on another CBDC-related project known as e-HKD.
The digital currency has demonstrated multiple use cases, including payments, deposits, and investment scenarios.