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OKX executive states that KYC will enhance standards and attract genuine investment into cryptocurrency: Blockchain Economy Dubai 2023
While certain segments of the cryptocurrency sector emphasize privacy and anonymity, others concentrate on enhancing standards within the industry and attracting traditional participants and increased investment in digital assets.
At the recent Blockchain Economy Summit in Dubai, Cointelegraph engaged in a conversation with Lennix Lai, the global chief commercial officer at the crypto exchange OKX. During the discussion, the executive addressed various subjects, including the contrasts between traditional finance and the crypto realm, how OKX managed the influx of exchanges adopting mandatory Know Your Customer (KYC) protocols, and how the exchange adapts to the swiftly evolving regulatory environment.
Lai and Cointelegraph’s Ezra Reguerra at the Blockchain Economy Summit in Dubai. Source: Joanna Alhambra
Lai remarked that crypto is “a lot more fun” compared to traditional finance. Having previously worked in conventional firms, he noted that many processes in the traditional finance sector are inefficient. He elaborated:
“It’s relatively difficult to innovate in traditional finance. In crypto, it’s a lot better and more efficient. And in terms of cost, it is a lot more cheap. So, you can see the pace is a lot faster, and we can serve an even bigger audience than traditional finance right now.”
When challenges emerged, the executive indicated that there was considerable internal and external friction before resolving issues in traditional finance, even when solutions were apparent. Additionally, Lai mentioned that regulatory considerations must also be taken into account before devising solutions.
Regarding crypto, Lai informed Cointelegraph that regulators generally share similar guidelines and expectations, as they aim to protect consumers. He stated that navigating the diverse regulations from various jurisdictions worldwide necessitates thorough research and mapping of the distinct requirements.
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Lai delivering his keynote speech at the Blockchain Economy Summit Dubai event. Source: Cointelegraph
“Different level of requirement, different level of regulation. But I think all the regulators share similar guidelines and expectations. For example, they want to protect the customer, they want to monitor the trade, they want customer segregation,” he stated.
Related: How OKX convinced F1 star Daniel Ricciardo it’s safe to promote crypto
When questioned about OKX adopting the trend of implementing mandatory KYC at its exchange, Lai expressed the necessity to “raise the bar” in crypto, akin to traditional finance. The executive asserted that this would attract what he referred to as “the real capital and the main money” to the sector. He clarified:
“That’s how we grow the real market, because if ever your compliance standard cannot meet or somehow talking in the same language with traditional finance, they can never, despite of their interest, despite of our innovation, invest or bring in capital to the space.”
Lai noted that KYC represents the initial level and the first step toward elevating the compliance standard in the industry to accommodate other participants in the financial world.
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