OKX exec says KYC will ‘raise the bar,’ bring real capital into crypto: Blockchain Economy Dubai 2023
The global chief commercial officer at crypto exchange OKX, Lennix Lai, recently shared his thoughts on the differences between traditional finance and the crypto space during an interview at the Blockchain Economy Summit in Dubai. Lai expressed his belief that the crypto industry is “a lot more fun” and efficient compared to traditional finance.
Lai, who has experience working in traditional firms, highlighted the inefficiencies in the old finance world. He emphasized that innovation is challenging in traditional finance and that fixing problems often entail internal and external friction. In contrast, Lai finds crypto to be more efficient and cost-effective. He believes that the pace of innovation in the crypto space is faster, while also serving a larger audience than traditional finance.
When it comes to problem-solving in traditional finance, Lai explained that regulatory aspects and the need for extensive research add complexity to finding solutions. On the other hand, Lai noted that regulators in the crypto industry share similar guidelines and expectations as their goal is to protect consumers. Navigating the different regulations across jurisdictions requires thorough research and understanding of the requirements in each region.
Regarding the trend of implementing mandatory Know Your Customer (KYC) checks in the crypto space, Lai mentioned the importance of raising the bar and complying with the same standards as traditional finance. He believes that by meeting these compliance standards, the industry can bring in “the real capital and the main money,” which would facilitate the growth of the market.
Lai sees KYC as the first step towards raising the compliance standard in the crypto space. By aligning with the requirements of traditional finance, the industry can attract more players and investments. This approach would not only enhance the overall reputation and credibility of the crypto industry but also pave the way for its integration with traditional financial systems.
Overall, Lai’s insights shed light on the contrasting dynamics and advantages of working in the crypto industry versus traditional finance. While traditional finance may have its own set of limitations and challenges, the crypto space presents opportunities for innovation, efficiency, and increased accessibility. By addressing regulatory concerns and raising compliance standards, the crypto industry can bridge the gap with traditional finance and unlock its full potential.
