Whereas some areas of the crypto house concentrate on privateness and anonymity, others concentrate on elevating the requirements throughout the house and on bringing in conventional gamers and extra capital on the earth of digital property.
On the current Blockchain Financial system Summit held in Dubai, Cointelegraph spoke with Lennix Lai, the worldwide chief industrial officer at crypto alternate OKX. Through the interview, the manager mentioned a number of subjects, together with the variations between working in conventional finance and crypto, how OKX dealt with the wave of exchanges implementing necessary Know Your Buyer (KYC) checks and the way the alternate navigates the quickly altering regulatory panorama.
Lai and Cointelegraph’s Ezra Reguerra on the Blockchain Financial system Summit in Dubai. Supply: Joanna Alhambra
In accordance with Lai, crypto is “much more enjoyable” than conventional finance. Lai, who beforehand labored in conventional corporations, stated there are numerous processes within the outdated finance world that he believes are inefficient. He defined:
“It’s comparatively tough to innovate in conventional finance. In crypto, it’s rather a lot higher and extra environment friendly. And when it comes to price, it’s much more low cost. So, you may see the tempo is rather a lot sooner, and we will serve a fair greater viewers than conventional finance proper now.”
When issues arose, the manager stated that there was numerous inner and exterior friction earlier than having the ability to repair issues in conventional finance, even when the options had been apparent. Moreover, Lai stated there are additionally regulatory points to think about earlier than developing with options.
Relating to crypto, Lai informed Cointelegraph that regulators share virtually the identical tips and expectations as they share the objective of defending the buyer. The chief stated that navigating totally different laws from numerous jurisdictions internationally requires in depth analysis and mapping out the totally different necessities.
Lai delivering his keynote speech on the Blockchain Financial system Summit Dubai occasion. Supply: Cointelegraph
“Completely different degree of requirement, totally different degree of regulation. However I believe all of the regulators share comparable tips and expectations. For instance, they wish to shield the client, they wish to monitor the commerce, they need buyer segregation,” he stated.
When requested about OKX following the development of bringing necessary KYC to its alternate, Lai stated there’s a have to “increase the bar” in crypto, much like conventional finance. In accordance with the manager, it will convey what he described as “the true capital and the principle cash” to the house. He defined:
“That’s how we develop the true market, as a result of if ever your compliance normal can’t meet or in some way speaking in the identical language with conventional finance, they will by no means, regardless of of their curiosity, regardless of of our innovation, make investments or herald capital to the house.”
In accordance with Lai, KYC is the primary degree and step one to attempting to lift the compliance normal within the house in order that it could actually welcome different gamers on the earth of finance.