Speaker 1: Our guest is Lenox Lide, director of Financial Market said, okay,
Speaker 1: x and we wanted to take a closer look at
Speaker 1: the crypto space. So there's a lot we don't know
Speaker 1: about what has happened with f t X uh and
Speaker 1: we will surely find out more as as time goes by.
Speaker 1: One of the things I'm curious about, so f t
Speaker 1: X was the third biggest crypto exchange Finance, so was
Speaker 1: number one, coin base number two. Does what's happened to
Speaker 1: f t X make the others look stronger or does
Speaker 1: everybody look weaker because of this? I think I would
Speaker 1: say everybody looked weaker because Aptic is one of the
Speaker 1: top t exchanges. Um so I mentioned that their top
Speaker 1: breaders in terms of lots of different kind of matrix.
Speaker 1: So this act is kind of I was saying, drama
Speaker 1: obviously underminc the reptation and connitence of the industry, especially
Speaker 1: to the centralized exchanges. Yeah soolutely, and it really in
Speaker 1: the underpins the need for more regulation. To the concern
Speaker 1: here is is could who could be next? I mean,
Speaker 1: is this kind of like a Lehman moment for crypto?
Speaker 1: It's very close to element moments for crypto. So it's
Speaker 1: a look like a really big counter party because of
Speaker 1: over average or trading. So a lot of people that
Speaker 1: involve currently I don't say ethics right now is bankrupts
Speaker 1: or five for bankruptcy, but I went I do now
Speaker 1: is a lot of counterparty, which is a client. I
Speaker 1: love training for amost of crypto cryptic companies where is
Speaker 1: money of crypto fund is being locked up and within
Speaker 1: ethics right now, whether or not there will be any
Speaker 1: contagious effect. That's some of the firms and an institutional
Speaker 1: we've experienced um liquidity, crunge of liquidity issues we don't
Speaker 1: know yet. Yeah, you know, he would would probably not
Speaker 1: want to see a lot more government regulation, although I'm
Speaker 1: sure there are plenty who would like to see that.
Speaker 1: But but at least, but at least the board's oversight
Speaker 1: should be there, and that's more like self regulation. But
Speaker 1: in this case, I think you have the two founders
Speaker 1: and one employee and it just didn't turn out to
Speaker 1: be enough to really oversee the operations of f t
Speaker 1: x mm hmm, yeah you sir, this has to I
Speaker 1: know they are operating in the very very very low
Speaker 1: uh Now, hack CON's factions they like to they like
Speaker 1: to do something like this. So so it's very difficult
Speaker 1: to to to imagine that how they operate in tonally
Speaker 1: whether or not they have a selfficient segregation of power.
Speaker 1: But but back to your question, in terms of governments
Speaker 1: or in terms of regular well for instance, for instance
Speaker 1: co mingling of funds, I mean, this is something that
Speaker 1: there should be I mean the boards should have said
Speaker 1: this is absolutely unacceptable. Yeah, I'm I'm not particularly sure
Speaker 1: that there's a coming rober client money. Maybe it just
Speaker 1: Elemator is one of the biggest clients of the f
Speaker 1: t X so they do have some kind of segregation
Speaker 1: of segregation of money. But but also they have oversizes
Speaker 1: of all kind of credit facility to one client, one
Speaker 1: single client. Can you tell us a little bit more
Speaker 1: about I guess what you know with relation to f
Speaker 1: t X UM do we know or do we understand
Speaker 1: that you had been speaking to sam Banquant Freed. No,
Speaker 1: just recently, not not frequently, just recently that we understand.
Speaker 1: We're not stud that they might have liquid issues around
Speaker 1: them Rember eat and they're looking forward or not. We
Speaker 1: can have strategic partnerships in by by actually helping I'm
Speaker 1: a little about in terms of short term liquids. Yeah, Lennox,
Speaker 1: I'm curious what your own kind of safeguards will be
Speaker 1: from here. I mean, are there some steps that you're
Speaker 1: taking as a result of this uh uh to to
Speaker 1: reassure markets about what you guys do. Obviously, the industry,
Speaker 1: not just okay x is just is right now the
Speaker 1: highest priority the substantially increase our transparency, especially the fact
Speaker 1: that they prove that the user that's every token that's
Speaker 1: you deposits on the okay x u token that you
Speaker 1: see on the okay x apps percent backed by a
Speaker 1: physical token on behind. What we can what can do
Speaker 1: right now is to employ a third party auditor and
Speaker 1: arrange a proof of we serve at the moment, it's
Speaker 1: going to happen within their days. Now, let's talk a
Speaker 1: little bit more about okay x. You've got a Dubai
Speaker 1: license you're taking on Singapore to for for the crypto crown. Here.
Speaker 1: Where do you see the industry in the next sort
Speaker 1: of five years. I think the industry will be think
Speaker 1: at least starting from this year, starting with this incidental
Speaker 1: next year's uh we see two trend. The first trend
Speaker 1: is the need. The industry would be looking for transparency
Speaker 1: and segregation, especially of car money. The third part would
Speaker 1: be the regulations are mostly ready. I mean the regulation
Speaker 1: across many manager restactions, getting a lot more robust framework
Speaker 1: on what related to an exchange business like us about
Speaker 1: how we can fit in in terms of license m
Speaker 1: du Bai, Bahamas, Singapore, Hong Kong. We all see different
Speaker 1: kind of framework is ready. It's relatively ready for us
Speaker 1: to apply, say okay ex Um. Maybe other major exchanges
Speaker 1: they won't just in corproverse on in some offshore entity
Speaker 1: jurisdiction anymore. They were going to be regulated, uh in
Speaker 1: in multiple jurisdiction. How bad do you think the fallout
Speaker 1: will be from ft X with other companies that, let's
Speaker 1: say have a heavy exposure there. Yeah, the woman is
Speaker 1: said that, sir, they have a kind of a whole
Speaker 1: loophouse around. I don't know, maybe it's seven to nine billions,
Speaker 1: so so that is their col money or that is
Speaker 1: maybe some of the some of the some of the
Speaker 1: laws related to Alamator. So I think that dust is
Speaker 1: yet to be settled, and we need to know that
Speaker 1: who will be I think the industry might need to
Speaker 1: know that who will be the biggest creditors related to
Speaker 1: optics slash alimator of ALS alright, thanks very much for
Speaker 1: joining us. Appreciate the time Mellen. Excellent ex slide. The
Speaker 1: Director of Financial Markets said, okay x