Good afternoon everyone. It's an honor to be invited again to participate in the Hong Kong Web3 Carnival hosted by Wanxiang Blockchain Labs and HashKey Group. This event provides us with a great opportunity to gather and discuss how to build a healthy and sustainable Web3 ecosystem.
Today, I'll be discussing "Responsible Innovation," but before diving into this topic, let me share two interesting sets of data.
The Accelerating Adoption of Digital Assets
Gold vs. Bitcoin ETFs:
- The first gold spot ETF took over two years to reach $10 billion in assets under management (AUM) in 2004
- The first Bitcoin spot ETF approved by the SEC in early 2024 achieved the same $10 billion AUM milestone in just seven weeks
On-Chain Transaction Growth:
- Since 2019, on-chain transaction volume has shown steady growth through both bull and bear markets
- This growth trend remains consistent when examining data from the past decade across Bitcoin, Ethereum, and other networks
These data points reveal important long-term trends in our industry. The rapid adoption of Bitcoin ETFs demonstrates growing recognition of Bitcoin's value as the first global digital currency network offering transparency, control, and choice - core values enabled by blockchain technology.
The Spirit of Our Industry
At its heart, our industry has always been about:
👉 Three fundamental principles:
- Transparency
- Responsibility
- User empowerment
These principles guide how we develop technologies, products, and solutions. Over the past two years, we've been learning from regulated industries while maintaining our innovative spirit to enhance these core values.
OKX's Approach to Responsible Innovation
1. Enhancing Transparency Through Technology
Since November 2022, OKX has pioneered the industry's Proof of Reserves (POR) program:
- Publishes monthly automated reserve reports (17 consecutive months and counting)
- Expanded asset coverage from 3 to 22 cryptocurrencies
- Publicly shares 450,000+ on-chain addresses for user verification
- First platform to implement zkSTARK technology for mathematical verification of reserves
This represents an important step in industry self-regulation, meeting user expectations for financial-grade auditing standards.
2. Advancing Web3 Accessibility
Our significant investments in Web3 technology include:
OKX Web3 Wallet - A self-custody solution featuring:
- Support for multiple public chains, DApps, NFT platforms, and DEX aggregators
- Account abstraction for simplified transaction flows
- MPC wallet technology with social recovery options
- Open-source, audited modules available on GitHub
We believe self-custody wallets represent the purest technical solution for ensuring transparency while giving users full control over their assets.
3. Building Robust Internal Controls
As a centralized platform handling user assets, we recognize our tremendous responsibility:
- Pursuing licenses in strategic jurisdictions (Dubai VARA approval, Singapore MPI license)
- Strengthening governance and operational processes
- Collaborating with regulators to combat financial crimes
- Implementing advanced compliance technologies
Our Commitment to Hong Kong's Web3 Ecosystem
Hong Kong holds strategic importance for OKX. We're proud to:
- Contribute to local Web3 ecosystem development
- Work with partners, stakeholders, and legislators
- Maintain compliance while driving innovation
- Make long-term investments in the region
FAQ Section
Q: How does OKX's POR differ from other exchanges?
A: Our POR uses zkSTARK technology for mathematical verification without third-party intermediaries, covering 22 assets with full address disclosure.
Q: What makes OKX Web3 Wallet unique?
A: It combines self-custody security with user-friendly features like account abstraction and social recovery, while being completely open-source.
Q: Why is OKX pursuing multiple licenses?
A: Licensing processes help build crucial internal controls while enabling compliant global operations - essential for user protection.
Q: How does OKX ensure transaction security?
A: Through advanced technologies like MPC wallets, rigorous auditing, and continuous security improvements to our open-source codebase.
Q: What's OKX's approach to regulatory compliance?
A: We proactively engage with regulators, implement robust AML controls, and maintain transparency across all operations.
Looking Ahead
We remain optimistic about Web3's future and OKX's role in building a healthy, sustainable ecosystem. By focusing on transparency, responsibility, and user empowerment, we're committed to creating long-term value for the industry.
Through continued technological innovation and responsible practices, we believe the blockchain industry can achieve its full potential while maintaining the trust of users and regulators alike. The journey continues, and we're excited to be part of it.