Fintech is all the rage in the markets nowadays, and in a move to show how much it is valued globally, Abu Dhabi and Australia have sealed a cooperation agreement in the fintech field.
Their respective financial authorities, the Financial Services Regulatory Authority (FSRA) and the Australian Securities and Investments Commission (ASIC), and have signed a cooperation agreement to set this in motion. This follows Abu Dhabi Global Markets signing a similar agreement with the Cypriot regulator in March.
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The Middle East and North Africa are expected to lead the next wave in the financial space and hence this agreement assumes added significance. Already, the UAE (where Abu Dhabi is located) is Australia’s largest trading partner, with trade in goods and services between them worth more than $8.8 billion. This agreement is expected to expand things even further.
After the signing of the agreement, ASIC Chairman Greg Medcraft said: “Fintech developments are not confined by national borders. Each country and region has a different experience with fintech, and there is much we can learn from engaging with one another. This Agreement will help to connect Australian fintech businesses with a range of exciting opportunities in a region ripe for further development.”
ASIC has already entered into such agreements with the United Kingdom, Singapore, Ontario, Hong Kong, Japan and Malaysia, but this agreement is expected to give it a foothold in a region which has been seeing explosive growth over the last few years, as evidenced by the growing number of startups and accelerators.
This agreement is expected to enable both sides to understand their respective regulatory requirements, in order to help fintech businesses receive support and advice when required. This will, in turn, boost the companies and help them to expand their footprints in different jurisdictions around the world.