1
00:00:00,080 --> 00:00:03,960
Speaker 1: Our guest is Lenox Lide, director of Financial Market said, okay,

2
00:00:04,240 --> 00:00:06,360
Speaker 1: x and we wanted to take a closer look at

3
00:00:06,360 --> 00:00:09,239
Speaker 1: the crypto space. So there's a lot we don't know

4
00:00:09,400 --> 00:00:12,000
Speaker 1: about what has happened with f t X uh and

5
00:00:12,200 --> 00:00:15,800
Speaker 1: we will surely find out more as as time goes by.

6
00:00:15,920 --> 00:00:18,520
Speaker 1: One of the things I'm curious about, so f t

7
00:00:18,760 --> 00:00:21,680
Speaker 1: X was the third biggest crypto exchange Finance, so was

8
00:00:21,800 --> 00:00:25,840
Speaker 1: number one, coin base number two. Does what's happened to

9
00:00:26,239 --> 00:00:29,760
Speaker 1: f t X make the others look stronger or does

10
00:00:29,840 --> 00:00:35,560
Speaker 1: everybody look weaker because of this? I think I would

11
00:00:35,560 --> 00:00:39,400
Speaker 1: say everybody looked weaker because Aptic is one of the

12
00:00:39,440 --> 00:00:43,560
Speaker 1: top t exchanges. Um so I mentioned that their top

13
00:00:43,640 --> 00:00:47,280
Speaker 1: breaders in terms of lots of different kind of matrix.

14
00:00:47,760 --> 00:00:51,960
Speaker 1: So this act is kind of I was saying, drama

15
00:00:52,320 --> 00:00:57,320
Speaker 1: obviously underminc the reptation and connitence of the industry, especially

16
00:00:57,360 --> 00:01:01,000
Speaker 1: to the centralized exchanges. Yeah soolutely, and it really in

17
00:01:01,080 --> 00:01:05,080
Speaker 1: the underpins the need for more regulation. To the concern

18
00:01:05,160 --> 00:01:07,240
Speaker 1: here is is could who could be next? I mean,

19
00:01:07,360 --> 00:01:09,640
Speaker 1: is this kind of like a Lehman moment for crypto?

20
00:01:11,080 --> 00:01:16,640
Speaker 1: It's very close to element moments for crypto. So it's

21
00:01:16,640 --> 00:01:19,600
Speaker 1: a look like a really big counter party because of

22
00:01:19,720 --> 00:01:23,000
Speaker 1: over average or trading. So a lot of people that

23
00:01:23,080 --> 00:01:30,240
Speaker 1: involve currently I don't say ethics right now is bankrupts

24
00:01:30,319 --> 00:01:33,520
Speaker 1: or five for bankruptcy, but I went I do now

25
00:01:33,760 --> 00:01:36,080
Speaker 1: is a lot of counterparty, which is a client. I

26
00:01:36,120 --> 00:01:40,600
Speaker 1: love training for amost of crypto cryptic companies where is

27
00:01:40,800 --> 00:01:45,080
Speaker 1: money of crypto fund is being locked up and within

28
00:01:45,120 --> 00:01:48,240
Speaker 1: ethics right now, whether or not there will be any

29
00:01:48,240 --> 00:01:51,720
Speaker 1: contagious effect. That's some of the firms and an institutional

30
00:01:51,800 --> 00:01:56,600
Speaker 1: we've experienced um liquidity, crunge of liquidity issues we don't

31
00:01:56,600 --> 00:02:01,640
Speaker 1: know yet. Yeah, you know, he would would probably not

32
00:02:01,720 --> 00:02:05,280
Speaker 1: want to see a lot more government regulation, although I'm

33
00:02:05,280 --> 00:02:07,200
Speaker 1: sure there are plenty who would like to see that.

34
00:02:07,920 --> 00:02:11,520
Speaker 1: But but at least, but at least the board's oversight

35
00:02:12,000 --> 00:02:15,360
Speaker 1: should be there, and that's more like self regulation. But

36
00:02:15,440 --> 00:02:17,560
Speaker 1: in this case, I think you have the two founders

37
00:02:17,560 --> 00:02:20,120
Speaker 1: and one employee and it just didn't turn out to

38
00:02:20,160 --> 00:02:23,400
Speaker 1: be enough to really oversee the operations of f t

39
00:02:23,720 --> 00:02:28,840
Speaker 1: x mm hmm, yeah you sir, this has to I

40
00:02:28,960 --> 00:02:32,400
Speaker 1: know they are operating in the very very very low

41
00:02:33,200 --> 00:02:37,000
Speaker 1: uh Now, hack CON's factions they like to they like

42
00:02:37,120 --> 00:02:40,200
Speaker 1: to do something like this. So so it's very difficult

43
00:02:40,240 --> 00:02:45,079
Speaker 1: to to to imagine that how they operate in tonally

44
00:02:45,880 --> 00:02:48,519
Speaker 1: whether or not they have a selfficient segregation of power.

45
00:02:49,480 --> 00:02:53,560
Speaker 1: But but back to your question, in terms of governments

46
00:02:53,720 --> 00:02:56,040
Speaker 1: or in terms of regular well for instance, for instance

47
00:02:56,040 --> 00:02:58,440
Speaker 1: co mingling of funds, I mean, this is something that

48
00:02:58,480 --> 00:03:01,200
Speaker 1: there should be I mean the boards should have said

49
00:03:01,240 --> 00:03:07,680
Speaker 1: this is absolutely unacceptable. Yeah, I'm I'm not particularly sure

50
00:03:07,720 --> 00:03:11,520
Speaker 1: that there's a coming rober client money. Maybe it just

51
00:03:11,880 --> 00:03:14,320
Speaker 1: Elemator is one of the biggest clients of the f

52
00:03:14,400 --> 00:03:17,040
Speaker 1: t X so they do have some kind of segregation

53
00:03:17,160 --> 00:03:21,679
Speaker 1: of segregation of money. But but also they have oversizes

54
00:03:21,919 --> 00:03:24,520
Speaker 1: of all kind of credit facility to one client, one

55
00:03:24,600 --> 00:03:28,360
Speaker 1: single client. Can you tell us a little bit more

56
00:03:28,400 --> 00:03:31,840
Speaker 1: about I guess what you know with relation to f

57
00:03:32,000 --> 00:03:35,080
Speaker 1: t X UM do we know or do we understand

58
00:03:35,080 --> 00:03:40,160
Speaker 1: that you had been speaking to sam Banquant Freed. No,

59
00:03:40,920 --> 00:03:46,560
Speaker 1: just recently, not not frequently, just recently that we understand.

60
00:03:46,600 --> 00:03:50,840
Speaker 1: We're not stud that they might have liquid issues around

61
00:03:50,880 --> 00:03:54,280
Speaker 1: them Rember eat and they're looking forward or not. We

62
00:03:54,400 --> 00:04:00,120
Speaker 1: can have strategic partnerships in by by actually helping I'm

63
00:04:00,160 --> 00:04:04,400
Speaker 1: a little about in terms of short term liquids. Yeah, Lennox,

64
00:04:04,480 --> 00:04:07,720
Speaker 1: I'm curious what your own kind of safeguards will be

65
00:04:07,800 --> 00:04:10,040
Speaker 1: from here. I mean, are there some steps that you're

66
00:04:10,040 --> 00:04:13,920
Speaker 1: taking as a result of this uh uh to to

67
00:04:14,000 --> 00:04:19,440
Speaker 1: reassure markets about what you guys do. Obviously, the industry,

68
00:04:19,560 --> 00:04:22,680
Speaker 1: not just okay x is just is right now the

69
00:04:22,720 --> 00:04:27,919
Speaker 1: highest priority the substantially increase our transparency, especially the fact

70
00:04:27,960 --> 00:04:31,279
Speaker 1: that they prove that the user that's every token that's

71
00:04:31,360 --> 00:04:34,440
Speaker 1: you deposits on the okay x u token that you

72
00:04:34,520 --> 00:04:37,480
Speaker 1: see on the okay x apps percent backed by a

73
00:04:37,560 --> 00:04:40,440
Speaker 1: physical token on behind. What we can what can do

74
00:04:40,680 --> 00:04:43,800
Speaker 1: right now is to employ a third party auditor and

75
00:04:44,080 --> 00:04:46,800
Speaker 1: arrange a proof of we serve at the moment, it's

76
00:04:46,839 --> 00:04:50,359
Speaker 1: going to happen within their days. Now, let's talk a

77
00:04:50,360 --> 00:04:52,240
Speaker 1: little bit more about okay x. You've got a Dubai

78
00:04:52,440 --> 00:04:56,240
Speaker 1: license you're taking on Singapore to for for the crypto crown. Here.

79
00:04:56,400 --> 00:04:58,440
Speaker 1: Where do you see the industry in the next sort

80
00:04:58,440 --> 00:05:03,360
Speaker 1: of five years. I think the industry will be think

81
00:05:03,400 --> 00:05:06,839
Speaker 1: at least starting from this year, starting with this incidental

82
00:05:06,920 --> 00:05:11,200
Speaker 1: next year's uh we see two trend. The first trend

83
00:05:11,320 --> 00:05:15,679
Speaker 1: is the need. The industry would be looking for transparency

84
00:05:15,839 --> 00:05:20,000
Speaker 1: and segregation, especially of car money. The third part would

85
00:05:20,040 --> 00:05:23,280
Speaker 1: be the regulations are mostly ready. I mean the regulation

86
00:05:23,320 --> 00:05:27,720
Speaker 1: across many manager restactions, getting a lot more robust framework

87
00:05:28,240 --> 00:05:33,000
Speaker 1: on what related to an exchange business like us about

88
00:05:33,040 --> 00:05:36,080
Speaker 1: how we can fit in in terms of license m

89
00:05:36,320 --> 00:05:41,479
Speaker 1: du Bai, Bahamas, Singapore, Hong Kong. We all see different

90
00:05:41,520 --> 00:05:45,440
Speaker 1: kind of framework is ready. It's relatively ready for us

91
00:05:45,440 --> 00:05:49,720
Speaker 1: to apply, say okay ex Um. Maybe other major exchanges

92
00:05:50,120 --> 00:05:54,400
Speaker 1: they won't just in corproverse on in some offshore entity

93
00:05:54,600 --> 00:05:57,880
Speaker 1: jurisdiction anymore. They were going to be regulated, uh in

94
00:05:58,120 --> 00:06:02,680
Speaker 1: in multiple jurisdiction. How bad do you think the fallout

95
00:06:02,720 --> 00:06:06,440
Speaker 1: will be from ft X with other companies that, let's

96
00:06:06,440 --> 00:06:11,560
Speaker 1: say have a heavy exposure there. Yeah, the woman is

97
00:06:11,600 --> 00:06:16,880
Speaker 1: said that, sir, they have a kind of a whole

98
00:06:17,000 --> 00:06:21,440
Speaker 1: loophouse around. I don't know, maybe it's seven to nine billions,

99
00:06:21,440 --> 00:06:24,719
Speaker 1: so so that is their col money or that is

100
00:06:24,839 --> 00:06:26,200
Speaker 1: maybe some of the some of the some of the

101
00:06:26,279 --> 00:06:31,000
Speaker 1: laws related to Alamator. So I think that dust is

102
00:06:31,120 --> 00:06:34,320
Speaker 1: yet to be settled, and we need to know that

103
00:06:34,400 --> 00:06:36,839
Speaker 1: who will be I think the industry might need to

104
00:06:36,920 --> 00:06:40,760
Speaker 1: know that who will be the biggest creditors related to

105
00:06:41,240 --> 00:06:46,240
Speaker 1: optics slash alimator of ALS alright, thanks very much for

106
00:06:46,360 --> 00:06:49,320
Speaker 1: joining us. Appreciate the time Mellen. Excellent ex slide. The

107
00:06:49,440 --> 00:06:51,640
Speaker 1: Director of Financial Markets said, okay x