E-Crypto News talks to OKEx’s Andy Cheung About Self Regulated Crypto Exchanges
How self-regulation of currency exchanges can improve the crypto
Cryptocurrency Exchanges have been at the center of one storm or the other and this has affected the rate of adoption of cryptocurrencies and their corresponding Blockchain technologies.
In order to figure out the best way forward, E-Crypto News reached out to Andy Cheung head of operations at OKEx which is a premier cryptocurrency and digital asset exchange out of Malta, here is what he had to say:
Andy Cheung, Head of Operations at OKEx.
- How will self-regulation in cryptocurrency exchanges work in a Crypto-skeptic World?
Andy Cheung, Head of Operations at OKEx: We believe that self-regulation will help bring trust and transparency to the cryptocurrency industry. The crypto industry is still in its infancy, and more work could be done to clarify the skepticism. Tackling the unique challenges in crypto by working with different stakeholders and encouraging crypto acceptance will help counter the misconduct and guide the industry to operate in a more compliant manner.
- What are the implications of an unregulated crypto space?
Cheung: Issues with traditional market misconduct and manipulation appeared to be a cat and mouse game with a long history, yet it is an industry challenge of all time. The same issue could apply in the crypto industry, where users need trust and exchanges need to establish a strong reputation, which is a long-term effort. We aim to uplift industry standards by being ethical, transparent, and self-regulated; and by setting an example to the industry.
- Will the self-regulation of cryptocurrency exchanges lead to further adoption of cryptocurrencies?
Cheung: Yes. We recently announced an initiative to create a Self-Regulated Organization (SRO) aimed at standardizing exchange practices and policies. Member exchanges will work together to define and adopt standards that will promote digital asset adoption globally, educate governments and regulators, and develop metrics and criteria for trading, listings, and reporting.
- What are the challenges that cryptocurrency exchanges face in terms of Government regulatory practices?
Cheung: A major challenge is that crypto exchanges operate globally, but regulations can vary greatly by jurisdiction. This means that exchanges have to operate differently in different countries. Users accessing OKEx in South Korea may have a different experience than those operating in Malta, for example. We study jurisdictions very closely so that we can deliver compliant products and services to all of our users.
- Will a self-regulating body of cryptocurrency exchanges be able to influence the prices of cryptocurrency assets?
Cheung: While digital assets are often regarded as a high-volatility investment (compared to gold or government bonds that are extremely stable), price fluctuations happen for lots of reasons. We believe self-regulation could lead to more trustworthiness and transparency in the market, which could stabilize the ecosystem. When crypto exchanges can be counted on to operate fairly and securely, this can lead to a more predictable marketplace.
- Between the Initial Exchange Offering and the Securities Token Offering which form of cryptocurrency financing will take precedence in the future?
Cheung: Technology and talent are flooding the blockchain industry, and this can only mean good things for crypto financing. Since the boom of 2017, people have become fascinated by ICOs, STOs, IEOs, et cetera. We aren’t concerned about what form of crypto financing will take precedent, but are more interested in helping to surface the best crypto projects out there. That’s our main goal with OKEx Jumpstart, our token sale platform. You can learn more at https://www.okex.com/activity/jumpstart.
- What will be the worst nightmare for cryptocurrency exchanges?
Cheung: The crypto industry’s worst nightmare would be bad actors ruining the reputation of exchanges.
- What will be the best operating environment for cryptocurrency exchanges?
Cheung: The best operating environment would be one with regulatory clarity. OKEx and many others are hoping that we can work with regulators to bring trust, transparency, and growth to the sector by defining how exchanges can operate in various countries. With regulatory clarity, we can help bring crypto to the next billion users.
- What role can cryptocurrency exchanges play in the world of finance?
Cheung: As more and more traditional investors, enterprises, and governments take an interest in cryptocurrency, it’s important for crypto exchanges to work to deliver services that meet the needs of todays’ financial leaders. A decentralized financial system can be mutually beneficial with traditional markets by substantially lowering operational costs and by covering areas that traditional markets cannot cater to. At the same time, this can balance volatile investments from an infant market.
As a leading exchange, we are committed to developing a fully fledged financial instrument with reasonable price-strategy on crypto and to leverage blockchain in reducing counter-party risk with real-time settlement.
- If you had three wishes which can only come true in the crypto space and a Genie who is able to make them come true what will those wishes be?
For crypto exchanges to work together to meet the needs of billions of potential crypto users.
For governments to understand the needs of the crypto community and work to support more innovation in this space.
For a future where anyone can manage their financial assets without intermediaries.
What do you think? How can self-regulation help in moving the crypto space forward? Please let us know in the comments below!