Cryptocurrency Council comments on Hong Kong’s proposal defending algorithmic stablecoins

author: Nidhi Kolhapur

Nidhi is a certified digital marketing executive and passionate cryptocurrency journalist covering the world of alternative currencies. She shares the latest trending news about cryptocurrency and blockchain.

March 2, 2024 21:06

CCI commented on Hong Kong’s proposed stablecoin regulatory framework, criticizing the proposed reserve and operating requirements to protect algorithmic stablecoins that are not approved by Hong Kong authorities. According to the report, given the decentralized nature of cryptocurrencies globally, it may be difficult for senior executives to have a physical presence in Hong Kong. According to the report, algorithm-based stablecoins cannot meet these requirements. CCI emphasized a risk-based approach that sets decentralized thresholds that do not stifle innovation overall.