OKEX Exchange Interview – Malta Summit 2019
FXStreet’s workforce has attended the Delta Summit on blockchain and innovation held in Malta in early October. We had the chance to talk with prime representatives of various initiatives and firms. OKEx, a leading international trade with many consumers in China, has given an interview to FXStreet.
My interlocutors had been Andy Cheung, Head of Operations and Lennix Lai, Director of Financial Markets. The interview consists of a formal questionnaire and quotes drawn from conversations through the occasion.
Let us begin with one of many central themes of this summit – regulation. OKEx has launched its initiative for creating a regulatory platform. Cryptomarket insiders know higher than conventional regulators the actual issues and options to maneuver ahead in offering regulation and a protected setting for traders.
Regarding this, Andy Cheung feedback:
“The Exchanges’ managements know that they need to increase transparency regarding the end-user.”
“Exchanges have a responsibility to do things right, to be sustainable. The users need to do their homework, study the exchanges, and eventually make their choice according to their trading needs.”
“The main problem arising from the lack of regulation is that the user cannot distinguish between those who do well and those who do badly. We don’t have a body that certifies those of us who are doing well.”
● When do you suppose regulators will deal with the cryptocurrency market on the similar stage as different markets like Forex?
(Andy) As an increasing number of traders take curiosity in crypto, regulators will start to deal with the crypto markets as they do different monetary markets. Regulatory our bodies have a accountability to guard their constituents. We’re already seeing elevated regulatory curiosity in a number of jurisdictions globally, and we imagine this development will proceed.
● Are you in favour of extra regulation within the sector? What sort of regulation helps markets to develop, an FCA mannequin or a CFTC mannequin?
(Andy) Yes, we imagine that clear compliance will convey credibility and belief to digital asset exchanges and domesticate a honest and clear buying and selling market.
(Lennix) As an trade, we welcome and respect every of the regulatory pointers in the direction of totally different shares and asset class. Yet cryptocurrency is a distinctive business that I feel copying the regulation from any particular mannequin may not be a good match. However, studying from the professionals and enhancing the cons from every mannequin and apply them to the crypto business can be ideally suited. Still, at an toddler stage, we imagine the crypto business can act like a sponge and develop.
● Across the globe, central banks are engaged on initiatives to create their digital foreign money fashions. Who do you see higher ready, and why? Whom do you see lagging on this race?
(Andy) Central banks presently face important challenges in growing digital foreign money fashions as a result of they’re closely regulated, centralized, and confined by jurisdictions. Digital asset exchanges have so far had a bonus of their capacity to develop and ship providers for buying and selling digital property. As the market matures, we anticipate an increasing number of central banks to catch up on this race.
● Do you suppose there may be sufficient work being carried out to distinguish between digital cash and digital utilities?
(Lennix) We consider digital property based mostly on a number of totally different standards and encourage merchants to judge every of their investments totally. OKEx is dedicated to offering the very best merchandise, providers, and digital property obtainable, no matter their class as cash or utilities.
● Does the rise in monetary regulation endanger the unique concept of Satoshi Nakamoto or has the unique concept been diluted a very long time in the past?
(Lennix) Satoshi Nakamoto created a peer-to-peer digital money system to remove the necessity for monetary establishments to behave as a third occasion. Financial rules can present oversight and safety to most people, which doesn’t dilute Satoshi’s unique imaginative and prescient. We are sturdy believers within the blockchain-empowered financial system and imagine that regulation can play an vital position in a honest and clear monetary ecosystem.
Another sizzling matter that was current in lots of casual conversations was safety. Despite a drop in safety incidents, the security of funds stays a prevailing concern for traders. The folks concerned in market exchanges comprehend it and need to present a safe ecosystem to draw new merchants.
● How do you handle the particularities of this market when it comes to safety and anonymity? – It appears sophisticated to take care of the steadiness. I keep in mind a information merchandise at the start of September about a massive transfer from Bitcoins to an unknown pockets.
(Lennix) We make each effort to make sure the security of our person’s funds and transactions by requiring KYC and offering a number of safety features and pointers. We are regularly evaluating and implementing state-of-the-artwork expertise to guard the safety of our customers.
● One of the recurrent dangers within the crypto market is the assaults on wallets, typically with the theft of huge quantities of digital cash. When do you suppose these headlines will likely be a factor of the previous?
(Lennix) Industry leaders should take accountability in delivering safety features and educating customers on greatest practices. Exchanges and pockets suppliers should self-regulate and advance the business in order that these recurring headlines develop into a factor of the previous.
● Advances in Quant computing, such because the one just lately introduced by Google, exponentially improve the calculation potential. Do you suppose you might be a risk to the Blockchain ecosystem due to its capacity to interrupt safety algorithms? Or can the crypto world harness this expertise to its benefit?
(Lennix) Advancement in quantum computing is one thing that OKEx continues to maintain a shut eye on. We imagine that new expertise can transfer the business ahead and be used to its benefit. We will proceed our mission to implement business-leading safety features that assist hold customers protected as quantum computing turns into a actuality.
There was little doubt amongst all of the members on the Delta Summit in regards to the potential of the Blockchain business. Thousands of potential purposes for this expertise are within the pipeline – however this huge potential ought to be managed correctly to keep away from errors that may damage the business.
Regarding this, Andy Cheung feedback:
“Crypto Fundamentals: The market generates a lot of noise right now. It will likely consolidate the number of projects and discard non-viable ones in the next two years.”
“Projects grow with the community. The community pushes forward the projects”
“Only those projects that offer long-term sustainability will survive.”
“The market is at a very early stage. If I had to compare it to another historical moment, it would resemble the turn-of-the-century years in the Hong Kong market.”
Market Growth questionnaire:
● I’ve seen a number of property that a person can commerce in your platform. Is this development going to proceed or in some unspecified time in the future will the obtainable property be lowered?
(Andy) Assets that move our rigorous requirements will proceed to be added to the OKEx platform. We additionally consider property which can be on our platform usually, to make sure they adjust to rules and meet our requirements. We’ll proceed to give attention to including and sustaining high quality initiatives on our platform.
● Do you anticipate the approval of a Bitcoin ETF in 2019? Do you suppose it may be as optimistic for the market as some specialists say?
(Andy) We can’t predict whether or not will probably be accepted, however we imagine an ETF can be optimistic for the market. It will grant extra legitimacy to cryptocurrency, which we contemplate progress.
● How do you see the position of the standard monetary press within the growth of this market? Has it caught up with the quick-transferring world of cryptocurrencies?
(Andy) The monetary press holds an vital position in educating the mass viewers and protecting the business accountable. We see the monetary press as rising and evolving simply because the crypto ecosystem is.
● Trump vs. Bitcoin – Make the $ nice once more. Do you suppose Bitcoin can dispute the position of the U.S. greenback as a reserve foreign money?
(Andy) Bitcoin provides folks an alternative choice to conventional banking buildings and funds. That stated, we imagine fiat currencies, together with the U.S. greenback, are right here to remain for the foreseeable future. Traditional market and the digital asset doesn’t go towards one another, as an alternative, they will work hand in hand to cater all type of wants from the market.
● What do you consider Facebook’s Libra mission? Do you suppose it jeopardizes monetary stability as some central banks declare?
(Andy) Facebook’s Libra has helped blockchain expertise takes centre stage all over the world. We view Libra as a optimistic for the blockchain business, and we see it as a chance for extra folks to develop into educated on the advantages of digital foreign money. We don’t see it as a risk to monetary stability.
(Lennix) Libra mission has served its goal of awakening most people in order the governments from totally different international locations in blockchain, therefore cryptocurrency. It created a discuss of the city that Libra cryptocurrency can be backed by reserves of US dollars, whereas the euro, Japanese yen, British pound and Singapore greenback would additionally present assist. In view of this, Libra can doubtlessly assist to ease the issue of worth volatility, which continues to plague cryptocurrencies like bitcoin.
Today there may be a multitude of competing Exchanges, however OKex stays within the leading pack persistently. Why do merchants select OKex?
(Andy) OKEx is a one-cease-store for merchants. We present a protected, dependable and secure setting for digital property buying and selling by way of the net interface and cell app by adopting GSLB, distributed server clusters and lots of extra superior applied sciences. We additionally invent and develop merchandise based on prospects’ wants and solutions to supply the very best buying and selling expertise obtainable within the business.
Could you inform us wherein international locations this market is hottest?
(Andy) OKEx takes worldwide markets as a entire and now we have been placing a lot of efforts in constructing our European markets. In latest occasions, now we have seen large development from the South African market, therefore now we have began as nicely in participating with the area people by internet hosting meetups to know and take heed to the wants and calls for.
Many market members are HODLers. Are you making an attempt to enhance the engagement of those merchants and make them extra energetic?
(Andy) We are believers within the blockchain-powered financial system, and a part of which means people ought to be answerable for their monetary lives. We respect every dealer to be their very own religion in buying and selling, and they need to at all times concentrate on their threat in assessing totally different pricing technique, to HODL or not… We present the instruments mandatory for customers to take part within the ecosystem how they select to.
The Blockchain ecosystem is centered on buying and selling. Despite a number of points, the trade market is consolidating and rising at a good tempo.
Regarding this, Andy Cheung feedback:
“There is an absolute lack of content on the exchanges: their proposals, the actions they carry out. There is too much marketing material covering everything.”
“OKEx wants to increase the amount of educational content it can offer its users. They have hired educational content specialists from other markets.”
● At FXStreet, our customers are primarily merchants who get pleasure from an simply accessible 24-hour market. What benefits can the Crypto market convey to those merchants? How can we assist them make this transition?
(Lennix) Crypto opens the doorways to a low price, close to-on the spot trades of 1000’s of currencies from anyplace on the earth. Many conventional merchants have already entered the crypto markets, and we imagine this development will proceed.
● What sort of technical instruments do you provide your customers? Trading instruments, buying and selling indicators service, breaking information?
(Lennix) We have launched Futures & Perpetual Swap Market Data , the primary-of-its-variety massive knowledge platform within the business providing correct, unbiased buying and selling knowledge for patrons to know the derivatives market. This new characteristic solely permits OKEx customers to entry the actual-time knowledge of OKEx’s futures and perpetual swap markets of 9 mainstream tokens together with BTC, LTC, ETH, ETC, XRP, EOS, BCH, BSV and TRX.
● At FXStreet, we connect explicit significance to the monetary and buying and selling schooling of our customers. Do you suppose that on the subject of buying and selling cryptocurrencies, merchants want a specialised agenda?
(Lennix) Each funding technique comes with their very own threat tolerance which caters the wants from totally different ranges of merchants. Technical indicators have been serving to merchants and traders to investigate the previous and predict future worth tendencies and patterns, they’re fashionable amongst conventional monetary market members, crypto merchants have been benefiting from all these typical instruments to make higher commerce selections.
● In your trade, you provide perpetual Swaps on cryptocurrencies. Could you clarify to our customers the way it works?
(Lennix) OKEx Perpetual Swap is a digital spinoff product that’s settled in digital tokens comparable to BTC. Each swap contract has a face worth of $100 USD. Traders can lengthy a place to revenue from the rise of a digital asset’s worth, or quick a place to revenue from the decline of a digital asset’s worth. The obtainable vary of leverage is 1-100x.
● Continuing with the merchandise you provide, what’s the profile of a futures contract person?
(Lennix) OKEx futures contract is a spinoff launched by OKEx to commerce contracts of digital property comparable to BTC and LTC. User profile of futures merchants consisted of each retailers and institutional merchants. Opening lengthy or quick, merchants get pleasure from flexibility of their perspective to perspective token, therefore merchants can put 10x or 20x leverage for the futures contract. With such traits, futures buying and selling has been one of many favorite funding selections to the vast majority of merchants.
● What are the ache factors of cryptocurrencies merchants? What would it not take to deal with them?
(Lennix) Many of the challenges merchants face associated to safety and volatility. OKEx has created services and products to deal with these wants and incorporates new applied sciences like AI to create a protected, safe, person-pleasant ecosystem for all.
(Lennix) Cryptocurrency usually is labelled with excessive volatility. In view of this, all monetary investments consist of various ranges of threat that adjust the market volatility. Thus, threat evaluation is at utmost vital for every particular person to look at and contemplate the very best pricing technique for his or her wants.
Blockchain expertise would be the core of the following social and financial revolution. The prospects of certification and monitoring in a decentralized manner are set to hurry up all industries – with out a lack of safety or certainty of possession.
● We at the moment are speaking about decentralized or DEX markets. In latest days now we have discovered about liquidity issues and slippages. Do decentralized initiatives pose a increased threat of repetition of such conditions?
These are business-huge points. Decentralized exchanges face many challenges, and as an business chief OKEx hopes to collaborate with different exchanges to deal with points together with liquidity and slippages for every type of exchanges.
● What instruments do Crypto merchants use to remain knowledgeable? The absence of comprehensible elementary knowledge implies that costs transfer solely in response to regulatory information and technical evaluation.
OKEx encourages crypto merchants to make use of a number of instruments and assets to remain knowledgeable. It’s vital for traders and merchants to do their very own analysis and consider the danger related to taking part within the crypto markets.
● Could you give me a worth forecast for Bitcoin in 2022?
(Andy) We have seen there are voices out there suggesting Bitcoin’s present ~70% dominance stage could be the best it is going to ever once more attain. The reasoning given was that previous to the 2017 altcoin increase, there wasn’t even a developed marketplace for altcoins. However, as an trade, We imagine there may be room for a lot of cryptocurrencies to develop and co-exist within the market.
Andy Cheung, Head of Operations.
Andy is an entrepreneur par excellence. The former CEO of Groupon HK forayed into many sectors all through his profession together with P&L administration, gross sales & advertising and marketing, operations and workforce administration. He has held a number of vital roles at Groupon HK, iClick Interactive and Alibaba.
Andy presently oversees your complete operations, advertising and marketing and public relations of OKEx.
Lennix Lai, Financial Market Director.
Lennix introduced with him with over a decade of expertise within the monetary business, specialised on excessive-frequency buying and selling, DMA(Direct Market Access), asset administration, entrance-to-again buying and selling operation, threat administration, and compliance.
Lennix served in JP Morgan and AIG and was chargeable for CASH Financial Services Group, who held full accountability on supervising regulatory actions outlined by SFC (Securities and Futures Commission of Hong Kong).