Crypto Can Raise the Bar, Attract Capital by Aligning with Traditional Finance": OKX's Lai
Summary:
Lennix Lai, the global Chief Commercial Officer at crypto-exchange OKX, discussed the appeal and efficiency of crypto over traditional finance at the Blockchain Economy Summit in Dubai. Lai mentioned the need for crypto to "raise the bar" in terms of compliance standards, echoing sentiments in traditional finance, to attract substantial capital investment. Lai further views obligatory Know Your Customer (KYC) checks as the first step in aligning crypto's compliance standards with traditional finance and opening avenues for mainstream investment in crypto.
The world of cryptocurrency is split between advocates of privacy and anonymity, and champions for elevating the sector's norms, inviting mainstream participants, and attracting more funds to the realm of digital assets. Recently, at the Blockchain Economy Summit in Dubai, Cointelegraph had a conversation with OKX's global chief commercial officer, Lennix Lai. During the discourse, Lai touched upon various topics such as the distinctions between working in orthodox finance versus crypto, how OKX managed the pressures of obligatory Know Your Customer (KYC) checks sweeping through exchanges, and how the exchange adapts to the swiftly evolving regulatory terrain.
In the opinion of Lai, the world of crypto provides more amusement than its traditional counterpart. Having prior experience working in traditional finance companies, Lai opined that there are several procedures in the established finance sphere that he deems inefficient. He went on to qualify this by adding that compared to traditional finance, innovating in crypto is considerably less difficult. Furthermore, crypto is not only more efficient but also cheaper, hence permitting a more rapid pace and allowing a larger audience share compared to mainstream finance.
Whenever issues came up, Lai mentioned that attempting to resolve problems in traditional finance was fraught with significant internal and external conflicts even when the solutions seemed clear. Lai also added that prior to devising solutions, any potential regulatory implications had to be considered as well.
When the subject turned toward crypto, Lai informed Cointelegraph that there is a broad consensus amongst regulators about expectations and guidelines, as both parties aim to safeguard the interests of the consumer. Navigating various rules laid out by different jurisdictions worldwide necessitates intensive research and a thorough understanding of varying requirements, according to Lai.
In response to a query about OKX's decision to make KYC obligatory on its exchange, Lai conveyed that there is a need to "elevate the standards" in crypto, mirroring the sentiment in orthodox finance. This initiative, as per Lai, would usher in substantial capital flows to the sector. Lai signaled that it is crucial for the crypto sector's compliance standards to be congruent with those in conventional finance to exploit their interest and infuse capital into the sector.
As per Lai, making KYC mandatory is a first step towards elevating the compliance standard in the sector, paving the way for mainstream finance participants to enter the crypto sphere.
Published At
10/6/2023 10:00:00 AM
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