On 27 January 2026, the United Arab Emirates Capital Market Authority (CMA) and the Hong Kong Securities and Futures Commission (SFC) concluded a memorandum of understanding establishing a framework for mutual cooperation on digital asset-related matters. The MoU took immediate effect.
The MoU is a statement of intent to enhance mutual cooperation, consultation and exchange of information in the fields of general supervision and oversight of Cross-Border Regulated Entities. This is in order to enhance the protection of investors and to promote the competence and integrity of Cross-Border Regulated Entities.
Cross-Border Regulated Entities
The MoU defines Cross-Border Regulated Entities as entities authorised or licensed to conduct digital asset-related regulated activities that are either:
- regulated by both authorities; or
- regulated in one jurisdiction and within the same corporate group (a Related Corporation) as a regulated entity in the other jurisdiction.
Scope of Cooperation
The cooperation under this MoU excludes assistance for enforcement actions, which should be conducted in accordance with the provisions of IOSCO MMOU. The MoU identifies circumstances where cooperation will be particularly valuable, including initial authorisation applications and ongoing supervision and oversight of Cross-Border Regulated Entities.
Information Sharing Framework
The agreement establishes notification obligations requiring each authority to inform the other of certain events as soon as reasonably practicable. These include pending or implemented changes to laws and regulations, material adverse events affecting Cross-Border Regulated Entities, and significant regulatory or supervisory actions. Information may be shared on a request basis or provided voluntarily on an unsolicited basis where an authority considers it relevant to the other's supervisory responsibilities.
Periodic Liaison and Joint Training
The MoU provides for periodic liaison between the authorities and enables them to conduct joint training on topics of mutual supervisory interest. The cooperation and information sharing arrangements under this MoU shall be interpreted and implemented in a manner that is permitted by and consistent with the applicable Laws and Regulations of the Authorities.
The SFC's press release notes that this is its first agreement with an overseas regulator dedicated to supervisory collaboration on regulated digital asset entities. The MoU reflects the SFC's broader strategy of enhancing international cooperation as outlined in its ASPIRe roadmap published in February 2025.
The roadmap established frameworks across five key themes: access, safeguards, products, infrastructure and relationships.
About LawBEAM
LawBEAM's leading crypto team has extensive experience helping firms navigate complex legal and regulatory change. We represent UK and international crypto firms and advise on legal and regulatory strategy that positions our clients for success in international markets. Please contact our team to discuss how we can support your legal and regulatory needs
