Exclusive interview with OKX Global Chief Commercial Officer Lennix: The future boundaries and compliance of Web3 products

Interview: Tong, PANews

Written by: Weilin, PANews

In the wild territory of the on-chain world, OKX Web3 wallet has transformed into a "on-chain compass" with its powerful function of managing multi-chain assets with one-click and the unbounded experience of traveling to more than a thousand DApps - not only lights up a friendly beacon for novices, but also creates an efficient tool for old players. Although the OKX Web3 wallet suddenly stopped due to regulatory heavy hammers not long ago, it quickly returned to the on-chain battlefield with the new domain name web3.okx.com, demonstrating its strong resilience and adaptability.

At this year's Web3 Carnival, PANews interviewed Lennix Lai, the global chief commercial officer (CCO). This crypto pioneer, who transformed from a traditional financial trader, joined the OKX Web3 wallet in 2017 with his deep resonance with the "beauty of mathematics" of Bitcoin and led the team to grow from a small team of 20 people to a global hub of more than 500 people.

Faced with the technological challenges and compliance exploration of the on-chain world, OKX Web3 wallet has continuously broadened the boundaries of the wallet and upgraded it from asset tools to a global on-chain infrastructure; in terms of user experience and ecological construction, they are also committed to breaking through multi-chain barriers and providing users with a simple, secure and compliant on-chain experience. This article will gain an in-depth understanding of the strategic evolution path of OKX Web3 wallet, the cutting-edge practice of compliance exploration, the shaping logic of brand globalization, and his pragmatic advice to practitioners and entrepreneurs through the perspective of this executive who is on the frontline of encryption.

From traditional financial traders to crypto executives: impressed by

Bitcoin's "beauty of mathematics"

Lennix is ​​a Hong Kong native with a background in financial engineering and is currently the Chief Commercial Officer of OKX (CCO). His main responsibility is strategic cooperation and global supervision. He was a trader in the traditional finance industry and before joining OKX Web3, he worked for companies such as JP Morgan, AIG and CASH. In 2017, Lennix joined OKX Web3 and was one of the earliest core members. In 2023, Lennix was promoted to the position of global chief commercial officer.

Recalling the motivation for entering the crypto industry, Lennix admitted, "About seven or eight years ago, I saw the white paper of Bitcoin. This mathematics is very elegant and beautiful, with just two pages of A4 paper. I think it has a very future. OKX was doing this at that time."

At that time, Lennix decided to join OKX and led the construction of the platform from a local exchange to a global platform. Lennix said that Hong Kong and Singapore have high similarities in cultural atmosphere and talent structure. He pointed out that Hong Kong and Singapore's technical and product talents often have a solid financial background. While their technical capabilities are outstanding, they also have experience in financial application development, which gives them obvious advantages in building exchanges, wallets and risk control systems, showing that they are highly adaptable to the cross-border working environment.

The next challenge is compliance

A deep understanding of traditional finance has become an important foundation for Lennix to lead the in-depth development of OKX Web3.

Lennix believes that the essence of finance has not changed from the traditional financial industry to the entry of the Web3 industry. "The financial entity is how to make better transaction tools. The user costs are lower, the transactions are faster, and there are concepts such as market makers. How to formulate market makers' policies? Our concepts in risk control include margin systems, standards for placing orders in each risk control, etc. We can apply some of the experiences in the financial market in the past 100 years. So why are there many people in the Web3 industry who do finance? Because they are born to understand these lowest-level financial concepts, which can be naturally and easier to match. Therefore, many of the product managers and risk control managers in our team come from big banks."

In his opinion, FinTech in the traditional financial field focuses more on digitizing the existing service system, while Web3's development path is closer to the "TechFin" model, that is, driven by technology and then loading finance as an application layer on the blockchain infrastructure. This architecture may also expand to the non-financial field in the future, but at this stage, finance is still the most active direction in Web3 applications.

Lennix pointed out that the essence of blockchain is low-cost, verifiable transfers and public ledgers, which makes it naturally adaptable to financial scenarios. Blockchain technology has brought a qualitative leap to the underlying structure of finance, breaking down regional and trust barriers, and accelerating the process of globalization. Therefore, financial applications are very easy to be suitable for blockchain. If you go down, there will be more fields of financial applications. Finally, these financial applications will serve Web2 companies, such as Social, Gaming, etc.

He emphasized that OKX Web3 is currently focusing on the decentralized application (DApp) ecosystem that focuses on finance. "We are wallets and also a multi-chain transaction system. What we need to solve for different multi-chain services is to provide users with one-stop Web3 access services. In addition, how should we deal with it? At the same time, we are also solving the low-cost problem of multi-chain asset transfer, and this technical field is very deep. The next focus is how to achieve compliance in self-custodial wallets? This barrier we will challenge next."

From self-hosted tools to multi-chain ecosystem, products are the core

genes

In terms of product vision, the OKX Web3 team has established two core directions: one is to establish a simple and easy-to-use self-hosted wallet solution, and the other is to promote interactive experience in the multi-chain world.

Lennix believes that OKX Web3 is like a self-hosted future. The team's primary goal is to create a self-hosted wallet tool that everyone can easily manage virtual assets; secondly, it is to build an open system compatible with the multi-chain ecosystem. In his opinion, a single public chain will be difficult to carry all future applications, and the real trend of Web3 will be the coexistence of multiple chains. However, the multi-chain ecosystem also brings problems such as complex user experience, high transfer costs and high operational risks.

Therefore, OKX Web3 hopes to become a key entrance for users to enter the Web3 world. Through continuous product innovation, optimize the user experience, and ultimately allow users to enjoy the convenience and smoothness similar to Web2 when completing transactions, transfers and other operations in a self-hosted wallet.

He further stated, "This is our most important product strategy at present. When the experience problem is solved, the next stage of strategy will gradually expand from pure on-chain asset tools to compliance, bank channels, fiat currencies, etc. In addition, we need to find ways to discover various hot spots and emerging applications that may arise on the chain, and we have enough sensitivity to support the development of the ecosystem."

He emphasized that the product is the core gene of OKX Web3 and the most recognizable DNA of the team. The team is extremely focused on identifying and solving user pain points. "There must be a lot of innovative people in the market, and they don't know whether they succeed or not. Then we will do the best experience and leave it to the ecology in the end."

DEX and CEX gradually differentiate their user groups, aiming to upgrade

to compliance infrastructure

With the increasing improvement of Web3 infrastructure, users' demand for decentralized transaction experience is increasing. In 2024, the number of app downloads of OKX Web3 wallet increased by about 122%; the global user growth was about 9 times; and the daily transaction volume of OKX DEX increased by 20 times.

Lennix also shared his views on the struggle between CEX and DEX. He pointed out that there are two key driving forces behind the market's incremental shift from CEX to DEX. "One thrust is that the development on the chain will be faster and more interesting. At the same time, the second thrust is that we continuously optimize the user experience on OKX Web3, which greatly lowers the threshold for users to migrate from CEX to DEX, so we accelerated the process. I think this is what I am proud of for this team."

Lennix holds a relatively neutral view on the market's discussion on whether DEX trading volume will exceed CEX in general. He believes that although the transaction volume of DEX is expected to exceed CEX in the future, the user groups of the two services will gradually differentiate and carry different roles and functions respectively. CEX is more stringent in asset screening and supervision, and is closer to the role of the "mainboard" in the traditional financial system. After multiple rounds of approval and compliance review, high-quality assets can be traded online on CEX, so it is more suitable for large funds and traditional institutions to directly participate in fiat currency. In contrast, the decentralized transaction environment on the chain has higher degrees of freedom, not only limited to tokens, but may also carry various innovative applications. With time precipitation and market verification, some of the high-quality projects will eventually be screened and transferred to the CEX platform for transactions.

"So the transaction volume may be higher. What we are more concerned about is whether we will serve different groups of people at the same time: institutions, financial institutions, and social security funds in the future. There is still a lot of technical space in the middle to complete the bridging and conversion between the two."

Lennix further introduced when reviewing the establishment of OKX Web3 wallet that the team did not plan to launch wallet products in the early stage, and its initial direction was to build on-chain analysis tools. But more than three years ago, the team gradually realized that wallets, as the "entry" of the on-chain world, would become a key strategic direction, so they focused their resources into this field. Even though there was no clear business return model initially, the team still insisted on developing products as pure tools, focusing on technology implementation and user experience.

At present, the OKX Web3 wallet team has a size of 300 to 500 people. Lennix compared this experience to the process of "Taobao's Alibaba Cloud" - at first glance, it has little to do with the main business, but it contains platform-level innovation potential.

"We have experienced many twists and turns when looking for the second growth curve, and the same feeling is the same as Taobao suddenly wants to do Alibaba Cloud. This is a completely different field, which is not good for the industry at the beginning. This pure investment cannot imagine that this business model will feed back to the main business, but this innovation will only be discovered after it is done, and we will think about how to coordinate. Another point is that we must follow the market. Wherever the market wants you to go, we respect the trend and follow the trend. We cannot judge the next round of trends, but as long as we judge which direction the user is heading, we will firmly make tools and products."

As the number of Web3 users continues to grow, OKX Web3 is also thinking about how to promote the development of on-chain infrastructure at a deeper level. Lennix said that the OKX Web3 team is redefining the boundaries and roles of "wallets", no longer just treating it as a tool for asset storage and transfers, but upgrading it into a compliance infrastructure in the on-chain world. He pointed out that as the crypto ecosystem continues to expand, the data security, KYC and anti-money laundering problems involved in on-chain exchanges are becoming increasingly prominent, and these problems urgently need to be solved under the self-custodial architecture.

"For example, there are hackers on the chain now, and there are methods to illegally transfer money and launder money. Do we have a way to mark this hacker address? For example, using AI data analysis to use faster speeds, less than seconds, or even seconds to block these suspicious addresses? For a quick judgment of a hacked address, this is the direction we want to think in the future."

Self-hosting supervision challenges behind DEX aggregation service

suspension

Not long ago, OKX Web3 wallet experienced a small storm, and DEX aggregation service was suspended due to MiCA regulatory requirements.

In response, Lennix said, "We are explaining. The concept of self-custody is a very completely new concept for regulation, so our team will take a certain amount of time. It takes a process, and it is actually just like when we set up an exchange, and it also takes years to discuss with regulators what the exchange is and how it works. We are very happy to do this because it is also something we can do, and there is no big problem. We separated the exchange and the wallet app, and told the EU regulators at the same time that this is a completely self-custody wallet, and under this premise, we can be compliant and meet the regulatory expectations of our supervision. Although regulators may not have a regulatory regulation for Web3 wallets now, they must have expectations for some large-scale participation, compliance, and licenses. Our expectations are to make better tools to meet regulatory needs."

Lennix admitted that in fact, OKX Web3 wallet has explored a path at the forefront of the industry, and also gave many other peer-employed institutions a reference. "We don't have a ready-made playbook to copy, and there is no way to face this situation. To be honest, although there are tools such as on-chain asset management tools and hacked address recognition on the market, there is not enough efficiency and technical bottom layer to meet regulatory expectations. So we are likely to develop ourselves and build our own on-chain KYC standard system. These are never for us, and they are all areas of crisis and are also a challenge."

Marketing philosophy that fits the brand gene

In addition to continuing to advance in compliance layout, OKX is also at the forefront of the industry in brand marketing. Lennix said the team performed particularly well in marketing, reaching a series of high-quality cooperation, including the Shanghai F1 Championship.

When talking about OKX's philosophy in marketing cooperation, Lennix said that he is more like a "gatekeeper" and that his true excellent execution comes from the entire marketing team. He emphasized that OKX does not only pursue exposure when choosing a partner, but also pays more attention to the consistency of brand tone.

"First of all, we hope that there is a brand sponsorship that can be improved to the brand tone of OKX Web3 wallet itself, but at the same time we have to choose the industry. This industry is best for this kind of sports, preferably globalized, with a lot of mass base, and is mainly based on technology, which is consistent with our pursuit of innovation, and finally found McLaren and Manchester City. They are very consistent with us in company management, team management and pursuit of the ultimate. For example, we pursue response speeds of dozens or hundreds of milliseconds in the exchange field, and their racing data transmission will also mention the time unit such as '300 milliseconds'. Because for them, 500 milliseconds can determine an overtaking and an accident. This ultimate pursuit of efficiency and precision is actually exactly the same as our technical culture. So we think we find a very good partner, which is a very long-term, genetically consistent partner. Our language is the same and our values ​​are consistent."

Practitioners should understand products and users, and Bitcoin will not

be able to explode strongly in the short term.

At the end of the interview, Lennix also gave his own experience and suggestions to the new generation of Web3 practitioners. He said that young post-00s BDs should break out of the inertia of "only running around and competing for personal connections" and have a deeper understanding of product logic, user pain points and industry challenges. He emphasized that BD is not only an executor of market expansion, but also a bridge connecting users, products and markets. Only by talking to users, collecting feedback, and passing valuable opinions to the product team can BD truly work. The core that supports all this is still professionalism - a deep understanding of industry, products, and technology trends is the strongest moat for young BDs.

For Web3 entrepreneurs, Lennix recommends abandoning the traditional thinking of "issuing coins is a project" and focusing on product construction in a bear market. He emphasized that the current entrepreneurial logic is different from the past. What is truly valuable are products that are implemented and recognized by users. Compared with infrastructure, what is worth paying more attention to at present is innovation in the practical application layer, especially the exploration of real financial directions such as on-chain compliance, on-chain identity authentication (KYC) and stablecoins.

In addition, when talking about the macro market environment, Lennix pointed out that the crypto market is still dominated by Bitcoin, and its market share continues to rise, and is highly related to US macro policies. Due to the multiple uncertainties such as tariff policies, interest rate changes and inflation expectations, market volatility has increased significantly. He believes that Bitcoin is unlikely to have a strong outbreak in the short term, and traders should maintain a defensive posture and pay attention to the progress of tariff negotiations and key economic data, such as CPI, as signals of the market's direction.

Disclaimer:

This article is for reference only. This article is not intended to provide (i) investment advice or investment recommendation, (ii) offer, solicitation or inducement of the purchase, sale or holding of digital assets, or (iii) financial, accounting, legal or tax advice. Digital assets (including stablecoins and NFTs) are affected by market volatility, involve high risks and may depreciate. For questions about whether trading or holding digital assets is suitable for you, please consult your legal/tax/investment professional. OKX Web3 Wallet is only a self-hosted wallet software service that allows you to discover and interact with third-party platforms. OKX Web3 Wallet cannot control the services of such third-party platforms and does not assume any responsibility for them. Not all products are available in all regions. Please be responsible for understanding and complying with relevant local applicable laws and regulations. The OKX Web3 Wallet and its related services are not provided by the OKX Exchange and are subject to the OKX Web3 Ecosystem Terms of Service.