While some sectors of the cryptocurrency industry prioritize privacy and anonymity, others are devoted to elevating standards and attracting traditional players and more capital to the world of digital assets.
At the recent Blockchain Economy Summit in Dubai, Cointelegraph had the opportunity to speak with Lennix Lai, the global chief commercial officer at crypto exchange OKX. During the interview, Lai discussed various topics, including the differences between working in traditional finance and the crypto industry, OKX’s approach to mandatory Know Your Customer (KYC) checks, and how the exchange navigates the ever-changing regulatory landscape.
According to Lai, working in the crypto industry is “a lot more enjoyable” than traditional finance. Having previously worked in traditional financial institutions, Lai believes that many processes in the traditional finance world are inefficient. He stated:
“In traditional finance, there is often a lot of internal and external friction when it comes to addressing problems, even when the solutions are obvious. Additionally, there are regulatory considerations that must be taken into account before implementing solutions.”
Regarding crypto, Lai mentioned that regulators have similar guidelines and expectations as their main goal is to protect consumers. He explained that navigating different regulations across various jurisdictions requires extensive research and careful consideration of the different requirements.
“There are varying levels of requirements and regulations, but all regulators share similar guidelines and expectations. For example, they aim to safeguard customers, monitor trades, and ensure customer segregation,” Lai said.
When asked about OKX’s decision to implement mandatory KYC checks, Lai emphasized the need to “raise the bar” in the crypto industry, similar to traditional finance. According to Lai, this approach will attract “real capital and significant investments” to the space. He elaborated:
“KYC is the first level and the initial step towards raising compliance standards in the industry, allowing us to welcome other participants from the world of finance.”