WEBVTT - Lennix Lai on Crypto (Radio)

0:00:00.080 --> 0:00:03.960
<v Speaker 1>Our guest is Lenox Lide, director of Financial Market said, okay,

0:00:04.240 --> 0:00:06.360
<v Speaker 1>x and we wanted to take a closer look at

0:00:06.360 --> 0:00:09.239
<v Speaker 1>the crypto space. So there's a lot we don't know

0:00:09.400 --> 0:00:12.000
<v Speaker 1>about what has happened with f t X uh and

0:00:12.200 --> 0:00:15.800
<v Speaker 1>we will surely find out more as as time goes by.

0:00:15.920 --> 0:00:18.520
<v Speaker 1>One of the things I'm curious about, so f t

0:00:18.760 --> 0:00:21.680
<v Speaker 1>X was the third biggest crypto exchange Finance, so was

0:00:21.800 --> 0:00:25.840
<v Speaker 1>number one, coin base number two. Does what's happened to

0:00:26.239 --> 0:00:29.760
<v Speaker 1>f t X make the others look stronger or does

0:00:29.840 --> 0:00:35.560
<v Speaker 1>everybody look weaker because of this? I think I would

0:00:35.560 --> 0:00:39.400
<v Speaker 1>say everybody looked weaker because Aptic is one of the

0:00:39.440 --> 0:00:43.560
<v Speaker 1>top t exchanges. Um so I mentioned that their top

0:00:43.640 --> 0:00:47.280
<v Speaker 1>breaders in terms of lots of different kind of matrix.

0:00:47.760 --> 0:00:51.960
<v Speaker 1>So this act is kind of I was saying, drama

0:00:52.320 --> 0:00:57.320
<v Speaker 1>obviously underminc the reptation and connitence of the industry, especially

0:00:57.360 --> 0:01:01.000
<v Speaker 1>to the centralized exchanges. Yeah soolutely, and it really in

0:01:01.080 --> 0:01:05.080
<v Speaker 1>the underpins the need for more regulation. To the concern

0:01:05.160 --> 0:01:07.240
<v Speaker 1>here is is could who could be next? I mean,

0:01:07.360 --> 0:01:09.640
<v Speaker 1>is this kind of like a Lehman moment for crypto?

0:01:11.080 --> 0:01:16.640
<v Speaker 1>It's very close to element moments for crypto. So it's

0:01:16.640 --> 0:01:19.600
<v Speaker 1>a look like a really big counter party because of

0:01:19.720 --> 0:01:23.000
<v Speaker 1>over average or trading. So a lot of people that

0:01:23.080 --> 0:01:30.240
<v Speaker 1>involve currently I don't say ethics right now is bankrupts

0:01:30.319 --> 0:01:33.520
<v Speaker 1>or five for bankruptcy, but I went I do now

0:01:33.760 --> 0:01:36.080
<v Speaker 1>is a lot of counterparty, which is a client. I

0:01:36.120 --> 0:01:40.600
<v Speaker 1>love training for amost of crypto cryptic companies where is

0:01:40.800 --> 0:01:45.080
<v Speaker 1>money of crypto fund is being locked up and within

0:01:45.120 --> 0:01:48.240
<v Speaker 1>ethics right now, whether or not there will be any

0:01:48.240 --> 0:01:51.720
<v Speaker 1>contagious effect. That's some of the firms and an institutional

0:01:51.800 --> 0:01:56.600
<v Speaker 1>we've experienced um liquidity, crunge of liquidity issues we don't

0:01:56.600 --> 0:02:01.640
<v Speaker 1>know yet. Yeah, you know, he would would probably not

0:02:01.720 --> 0:02:05.280
<v Speaker 1>want to see a lot more government regulation, although I'm

0:02:05.280 --> 0:02:07.200
<v Speaker 1>sure there are plenty who would like to see that.

0:02:07.920 --> 0:02:11.520
<v Speaker 1>But but at least, but at least the board's oversight

0:02:12.000 --> 0:02:15.360
<v Speaker 1>should be there, and that's more like self regulation. But

0:02:15.440 --> 0:02:17.560
<v Speaker 1>in this case, I think you have the two founders

0:02:17.560 --> 0:02:20.120
<v Speaker 1>and one employee and it just didn't turn out to

0:02:20.160 --> 0:02:23.400
<v Speaker 1>be enough to really oversee the operations of f t

0:02:23.720 --> 0:02:28.840
<v Speaker 1>x mm hmm, yeah you sir, this has to I

0:02:28.960 --> 0:02:32.400
<v Speaker 1>know they are operating in the very very very low

0:02:33.200 --> 0:02:37.000
<v Speaker 1>uh Now, hack CON's factions they like to they like

0:02:37.120 --> 0:02:40.200
<v Speaker 1>to do something like this. So so it's very difficult

0:02:40.240 --> 0:02:45.079
<v Speaker 1>to to to imagine that how they operate in tonally

0:02:45.880 --> 0:02:48.519
<v Speaker 1>whether or not they have a selfficient segregation of power.

0:02:49.480 --> 0:02:53.560
<v Speaker 1>But but back to your question, in terms of governments

0:02:53.720 --> 0:02:56.040
<v Speaker 1>or in terms of regular well for instance, for instance

0:02:56.040 --> 0:02:58.440
<v Speaker 1>co mingling of funds, I mean, this is something that

0:02:58.480 --> 0:03:01.200
<v Speaker 1>there should be I mean the boards should have said

0:03:01.240 --> 0:03:07.680
<v Speaker 1>this is absolutely unacceptable. Yeah, I'm I'm not particularly sure

0:03:07.720 --> 0:03:11.520
<v Speaker 1>that there's a coming rober client money. Maybe it just

0:03:11.880 --> 0:03:14.320
<v Speaker 1>Elemator is one of the biggest clients of the f

0:03:14.400 --> 0:03:17.040
<v Speaker 1>t X so they do have some kind of segregation

0:03:17.160 --> 0:03:21.679
<v Speaker 1>of segregation of money. But but also they have oversizes

0:03:21.919 --> 0:03:24.520
<v Speaker 1>of all kind of credit facility to one client, one

0:03:24.600 --> 0:03:28.360
<v Speaker 1>single client. Can you tell us a little bit more

0:03:28.400 --> 0:03:31.840
<v Speaker 1>about I guess what you know with relation to f

0:03:32.000 --> 0:03:35.080
<v Speaker 1>t X UM do we know or do we understand

0:03:35.080 --> 0:03:40.160
<v Speaker 1>that you had been speaking to sam Banquant Freed. No,

0:03:40.920 --> 0:03:46.560
<v Speaker 1>just recently, not not frequently, just recently that we understand.

0:03:46.600 --> 0:03:50.840
<v Speaker 1>We're not stud that they might have liquid issues around

0:03:50.880 --> 0:03:54.280
<v Speaker 1>them Rember eat and they're looking forward or not. We

0:03:54.400 --> 0:04:00.120
<v Speaker 1>can have strategic partnerships in by by actually helping I'm

0:04:00.160 --> 0:04:04.400
<v Speaker 1>a little about in terms of short term liquids. Yeah, Lennox,

0:04:04.480 --> 0:04:07.720
<v Speaker 1>I'm curious what your own kind of safeguards will be

0:04:07.800 --> 0:04:10.040
<v Speaker 1>from here. I mean, are there some steps that you're

0:04:10.040 --> 0:04:13.920
<v Speaker 1>taking as a result of this uh uh to to

0:04:14.000 --> 0:04:19.440
<v Speaker 1>reassure markets about what you guys do. Obviously, the industry,

0:04:19.560 --> 0:04:22.680
<v Speaker 1>not just okay x is just is right now the

0:04:22.720 --> 0:04:27.919
<v Speaker 1>highest priority the substantially increase our transparency, especially the fact

0:04:27.960 --> 0:04:31.279
<v Speaker 1>that they prove that the user that's every token that's

0:04:31.360 --> 0:04:34.440
<v Speaker 1>you deposits on the okay x u token that you

0:04:34.520 --> 0:04:37.480
<v Speaker 1>see on the okay x apps percent backed by a

0:04:37.560 --> 0:04:40.440
<v Speaker 1>physical token on behind. What we can what can do

0:04:40.680 --> 0:04:43.800
<v Speaker 1>right now is to employ a third party auditor and

0:04:44.080 --> 0:04:46.800
<v Speaker 1>arrange a proof of we serve at the moment, it's

0:04:46.839 --> 0:04:50.359
<v Speaker 1>going to happen within their days. Now, let's talk a

0:04:50.360 --> 0:04:52.240
<v Speaker 1>little bit more about okay x. You've got a Dubai

0:04:52.440 --> 0:04:56.240
<v Speaker 1>license you're taking on Singapore to for for the crypto crown. Here.

0:04:56.400 --> 0:04:58.440
<v Speaker 1>Where do you see the industry in the next sort

0:04:58.440 --> 0:05:03.360
<v Speaker 1>of five years. I think the industry will be think

0:05:03.400 --> 0:05:06.839
<v Speaker 1>at least starting from this year, starting with this incidental

0:05:06.920 --> 0:05:11.200
<v Speaker 1>next year's uh we see two trend. The first trend

0:05:11.320 --> 0:05:15.679
<v Speaker 1>is the need. The industry would be looking for transparency

0:05:15.839 --> 0:05:20.000
<v Speaker 1>and segregation, especially of car money. The third part would

0:05:20.040 --> 0:05:23.280
<v Speaker 1>be the regulations are mostly ready. I mean the regulation

0:05:23.320 --> 0:05:27.720
<v Speaker 1>across many manager restactions, getting a lot more robust framework

0:05:28.240 --> 0:05:33.000
<v Speaker 1>on what related to an exchange business like us about

0:05:33.040 --> 0:05:36.080
<v Speaker 1>how we can fit in in terms of license m

0:05:36.320 --> 0:05:41.479
<v Speaker 1>du Bai, Bahamas, Singapore, Hong Kong. We all see different

0:05:41.520 --> 0:05:45.440
<v Speaker 1>kind of framework is ready. It's relatively ready for us

0:05:45.440 --> 0:05:49.720
<v Speaker 1>to apply, say okay ex Um. Maybe other major exchanges

0:05:50.120 --> 0:05:54.400
<v Speaker 1>they won't just in corproverse on in some offshore entity

0:05:54.600 --> 0:05:57.880
<v Speaker 1>jurisdiction anymore. They were going to be regulated, uh in

0:05:58.120 --> 0:06:02.680
<v Speaker 1>in multiple jurisdiction. How bad do you think the fallout

0:06:02.720 --> 0:06:06.440
<v Speaker 1>will be from ft X with other companies that, let's

0:06:06.440 --> 0:06:11.560
<v Speaker 1>say have a heavy exposure there. Yeah, the woman is

0:06:11.600 --> 0:06:16.880
<v Speaker 1>said that, sir, they have a kind of a whole

0:06:17.000 --> 0:06:21.440
<v Speaker 1>loophouse around. I don't know, maybe it's seven to nine billions,

0:06:21.440 --> 0:06:24.719
<v Speaker 1>so so that is their col money or that is

0:06:24.839 --> 0:06:26.200
<v Speaker 1>maybe some of the some of the some of the

0:06:26.279 --> 0:06:31.000
<v Speaker 1>laws related to Alamator. So I think that dust is

0:06:31.120 --> 0:06:34.320
<v Speaker 1>yet to be settled, and we need to know that

0:06:34.400 --> 0:06:36.839
<v Speaker 1>who will be I think the industry might need to

0:06:36.920 --> 0:06:40.760
<v Speaker 1>know that who will be the biggest creditors related to

0:06:41.240 --> 0:06:46.240
<v Speaker 1>optics slash alimator of ALS alright, thanks very much for

0:06:46.360 --> 0:06:49.320
<v Speaker 1>joining us. Appreciate the time Mellen. Excellent ex slide. The

0:06:49.440 --> 0:06:51.640
<v Speaker 1>Director of Financial Markets said, okay x