OKX, a leading cryptocurrency exchange, has defended its aggressive compliance rules in response to user complaints about account restrictions and verification demands. The platform’s CEO, Star Xu, has issued a detailed explanation of the exchange’s compliance and risk control procedures.
OKX has over 600 dedicated compliance team members working to prevent illegal activities such as terrorist financing, human trafficking, and money laundering. The platform’s measures are necessary to meet global regulatory requirements across jurisdictions where OKX operates.
Users who use VPNs from restricted regions or have potential ties to sanctioned countries or political figures face heightened scrutiny, including requests for proof of address, residency history, and employment verification. However, the CEO acknowledged that legitimate users can be mistakenly flagged as risky due to “false positives” in the system.
OKX’s compliance system starts internally with zero-tolerance policies for employee misconduct and customer interest violations. The platform integrates third-party databases with internal behavioral analysis models to identify potential risk accounts. Users flagged for additional verification receive requests for fund source documentation, address proof, and employment history.
The CEO emphasized that truthful document submission would not compromise account safety for those not involved in illegal activities and highlighted strict data access controls and privacy protections for submitted documents. OKX maintains authority to issue warnings, request additional documentation, suspend account functions, or terminate accounts for policy violations.
Source: https://crypto.news/okx-chief-executive-defends-aggressive-compliance-rule