Star Xu, the founder of OKX, emphasized the importance of compliance checks in the crypto industry. Xu’s comments come amid a growing focus on regulatory compliance within the industry.

On July 17, 2023, Xu tweeted“In the current industry environment, all centralized swaps, exchanges, bridges without full compliance checks, including KYC, LMA, and others will be high risk in all jurisdictions. Multicoin is the latest example. Protect your crypto yourself.” This statement underscores the potential risks associated with platforms that lack robust compliance measures.

Editor’s Note: It is believed that Xu intended to reference ‘Multichain’ instead of ‘Multicoin’ in his tweet.

On July 14, 2023, Multichain announced the cessation of its operations due to the arrest of its CEO Zhaojun and his sister by the Chinese authorities. The team has lost contact with Zhaojun since May 21, and his sister, who managed daily operations and preserved user assets, was recently detained. The future of the preserved assets is now uncertain. This follows a recent exploit in which an attacker extracted $130 million from various token bridges.

In a follow-up tweet, Xu revealed that the OKX Centralized Exchange (CEX) team has been proactive in establishing a global standard compliance infrastructure. “OKX CEX team starts building our compliance infrastructure on previous global standard, keep building,” he wrote. This indicates OKX’s commitment to comply with regulatory standards and provide a secure platform for its users.

In another tweet, Xu questioned the nature of the newly announced UniSat Wallet brc20-swap. UniSat Wallet had previously announced the launch of “brc20-swap, the first native Ordinals exchange, floating on top of the bitcoin mainnet, using the brc20 protocol as its underlying asset infrastructure.” Xu responded to this announcement with a tweet asking, “Is it a centralized exchange?” This query suggests Xu’s ongoing concern about the compliance measures of the new Oridinals wallet.

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