In the realm of cryptocurrency, while some areas prioritize privacy and anonymity, others focus on elevating standards within the industry and attracting traditional players and more capital to the world of digital assets.
Recently, at the Blockchain Economy Summit in Dubai, Cointelegraph had the opportunity to interview Lennix Lai, the global chief commercial officer at crypto exchange OKX. During the discussion, Lai covered various topics, including the disparities between working in traditional finance and crypto, how OKX dealt with the influx of exchanges implementing mandatory Know Your Customer (KYC) checks, and how the exchange adapts to the ever-evolving regulatory landscape.
Lai expressed that crypto is much more enjoyable than traditional finance. Having previously worked in traditional firms, he believes that there are numerous inefficient processes in the old finance world. He elaborated on the challenges faced in traditional finance, stating that when problems arise, resolving them often involves a significant amount of internal and external friction, even when the solutions are obvious. Additionally, Lai emphasized the importance of considering regulatory factors when developing solutions.
Regarding crypto, Lai explained that regulators have similar guidelines and expectations as they share the common goal of protecting consumers. He mentioned that navigating through different regulations from various jurisdictions worldwide requires thorough research and understanding of the diverse requirements.
Lai stated, “There may be different levels of requirements and regulations, but I believe all regulators share similar guidelines and expectations. For instance, they strive to safeguard customers, monitor trades, and enforce customer segregation.”
When questioned about OKX implementing mandatory KYC procedures, Lai emphasized the need to raise the standards in crypto, just as in traditional finance. According to him, this will attract “real capital and the main money” to the industry. He explained that KYC serves as the initial level and first step towards enhancing compliance standards in order to appeal to other players in the finance world.
Overall, the interview shed light on OKX’s approach to navigating the crypto landscape, its commitment to meeting regulatory requirements, and its efforts to attract traditional players and capital to the digital asset space.