Bringing Innovation and Capital to the Crypto Space
While some areas of the crypto space focus on privacy and anonymity, others are dedicated to raising standards and attracting traditional players and more capital. According to Andy Lai, a top executive at OKX, crypto offers a more efficient and cost-effective alternative to traditional finance.
“It’s relatively difficult to innovate in traditional finance. In crypto, it’s a lot better and more efficient. And in terms of cost, it is a lot cheaper. So, you can see the pace is a lot faster, and we can serve an even bigger audience than traditional finance right now.”
Lai highlights the challenges faced in traditional finance when trying to fix problems. There is often internal and external friction, along with regulatory considerations that hinder the process. However, he believes that regulators across the board share similar guidelines and expectations such as customer protection and trade monitoring.
Raising the Bar for Crypto Compliance
OKX recently implemented mandatory KYC (Know Your Customer) requirements on its exchange. Lai explains that this move aims to “raise the bar” in crypto, similar to what is seen in traditional finance. By meeting compliance standards that align with traditional finance, Lai believes that the crypto space will attract real capital and investment.
“That’s how we grow the real market because if ever your compliance standard cannot meet or somehow talking in the same language with traditional finance, they can never, despite their interest or our innovation, invest or bring in capital to the space.”
Lai sees KYC as the first step towards raising compliance standards in order to welcome other players from the world of finance into the crypto space.
Hot Take: The Importance of Compliance for Crypto Growth
Andy Lai, a top executive at OKX, emphasizes the need for compliance in the crypto space to attract traditional players and capital. He believes that the crypto industry offers more efficient and cost-effective solutions compared to traditional finance. However, in order to bridge the gap between the two worlds, it is crucial to meet regulatory requirements and raise compliance standards.
Lai sees mandatory KYC as a significant step towards achieving this goal. By aligning with traditional finance in terms of compliance, the crypto space can tap into a larger audience and welcome real capital. This approach will help foster growth and innovation in the industry while ensuring customer protection and trade monitoring.
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