The Hong Kong Securities and Futures Commission (SFC) and the Dubai Financial Services Authority (DFSA) have concluded a bilateral agreement for the development and application of financial technologies.
The Securities and Futures Commission (SFC), an independent legal authority that evaluates financial markets in Hong Kong, is joining forces with its counterpart in Dubai to work on the deployment of state-of-the-art financial technologies … In a recent announcement by the SFC, the institution revealed that the agreement with the DFSA will serve to establish a framework in which both organizations “will provide mutual assistance, with the aim of keeping track of the latest developments in the development of financial technologies.”
The terms of the alliance reflect that DFSA and the independent regulator of the Dubai International Financial Center (DIFC) should cooperate with SFC in Hong Kong by sharing information on innovative technology companies and working side by side on Fintech projects.
Ashley Alder, Executive Director of the SFC, made the following statement:
“The agreement emphasizes the SFC’s impetus to strengthen regulatory collaboration with other institutions and to promote innovation in financial services. We will work hard with DFSA to support Fintech development in the markets of both territories. “
Earlier this year, the DFSA published a document outlining its innovative approach to regulating the Fintech industry and thus making the country a center of cutting-edge technology. In May, the institution reduced regulatory hurdles for new companies in the industry by granting Innovation Testing Licenses (ITLs), a type of certification that allows new companies to develop and test their financial tools, which could perfectly well be based in the chain of blocks.
According to representatives of the DFSA, the Fintech alliance with the main securities authority of Hong Kong arrives at a time when the Arab Emirates are pursuing the advances requested by the head of state Mohammed Bin Rashid Al Maktoum. Dubai wants to become the “first city in the world completely based on Blockchain” and institutions are storing all their documents in a chain of blocks that will come to light in 2020. To make matters worse, the government of Dubai has recently signed another Fintech agreement to develop digital passports, which will come in handy for the busiest airport in the world thanks to huge international passenger traffic.