OKX exec says KYC will ‘raise the bar,’ bring real capital into crypto

In the dynamic realm of cryptocurrency, where some sectors prioritize privacy and anonymity, there’s a parallel movement focused on elevating industry standards and enticing traditional players and increased capital into the digital assets domain.

The recent Blockchain Economy Summit in Dubai provided a platform for insightful discussions, including an engaging conversation with Lennix Lai, the global chief commercial officer at the renowned crypto exchange OKX. Lai delved into diverse topics, shedding light on the disparities between traditional finance and crypto operations. He highlighted the inefficiencies of conventional financial processes and contrasted them with the agility and cost-effectiveness inherent in the crypto sphere:

“In crypto, innovation is more accessible and efficient compared to traditional finance. The pace is rapid, costs are lower, and we can cater to a broader audience.”

Lai and Cointelegraph’s Ezra Reguerra at the Blockchain Economy Summit in Dubai

Lai emphasized the challenges faced in traditional finance, where internal and external frictions often hindered swift problem-solving, even for apparent issues. Moreover, regulatory constraints further complicated finding solutions within the traditional financial landscape.

In contrast, Lai noted that crypto regulation shared fundamental principles across jurisdictions, primarily aiming to safeguard consumers. However, he acknowledged the complexity of navigating diverse global regulations, necessitating meticulous research and understanding of distinct requirements:

“Regulations vary, but the core goal is similar — safeguarding consumers and ensuring trade monitoring and customer protection.”

Lai delivering his keynote speech at the Blockchain Economy Summit Dubai event

Addressing the pivotal shift toward implementing mandatory Know Your Customer (KYC) checks on OKX, Lai emphasized the necessity to “raise the bar” in crypto, akin to traditional finance standards. He emphasized that this move would usher in what he termed as “real capital and substantial investments” into the crypto landscape, fostering authentic market growth:

“To truly expand the market, we must align our compliance standards with traditional finance. Only then can we attract their interest and investments into the space.”

Lai underscored KYC as the initial step in elevating compliance standards, creating an environment conducive to welcoming financial industry stalwarts into the cryptocurrency arena. This strategic approach seeks to bridge the gap between traditional finance and the burgeoning crypto world, ensuring a harmonious integration of diverse financial players.

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