In the world of cryptocurrency, there are different focuses. Some prioritize privacy and anonymity, while others aim to elevate the standards and attract traditional players and more capital into the digital asset space.
At the recent Blockchain Economy Summit in Dubai, Cointelegraph had the opportunity to interview Lennix Lai, the global chief commercial officer at the crypto exchange OKX. During the conversation, Lai discussed various topics, including the disparities between working in traditional finance and crypto, how OKX dealt with the wave of exchanges implementing mandatory Know Your Customer (KYC) checks, and how the exchange navigates the constantly changing regulatory landscape.
Lai expressed his belief that crypto is “a lot more fun” than traditional finance. Having previously worked in traditional firms, he pointed out the inefficiencies in many processes within the old finance world. He explained that in traditional finance, there is often a lot of internal and external friction when trying to fix problems, even when the solutions are obvious. Additionally, Lai highlighted the regulatory aspects that need to be considered before finding resolutions.
In the realm of crypto, Lai stated that regulators have similar guidelines and expectations, as their goal is to protect consumers. He emphasized that dealing with different regulations from various jurisdictions around the world requires extensive research and understanding of the different requirements.
“There are different levels of requirements and regulations, but I think all regulators share similar guidelines and expectations. For example, they want to protect the customer, they want to monitor the trade, they want customer segregation,” Lai said.
When asked about OKX’s decision to implement mandatory KYC checks, Lai explained that there is a need to “raise the bar” in crypto, just like in traditional finance. According to him, this will attract “the real capital and the main money” into the space. Lai sees KYC as the first step in raising the compliance standard in the industry, allowing it to welcome other players from the world of finance.
In conclusion, Lennix Lai’s insights shed light on the differences between working in traditional finance and the crypto space. He emphasizes the importance of navigating regulations and implementing measures, such as KYC, to elevate the standards and attract more capital into the world of digital assets.