OKX CEO Star Xu Defends Rigorous Compliance Measures Amid User Backlash

"Prove Your Dad is Your Dad": The New Normal in Crypto Compliance?

Listen up, crypto fam! If OKX is asking you to prove your dad is your dad, don't take it personal—it's just the wild world of compliance we're living in.

OKX CEO Star Xu is dropping some serious truth bombs about the exchange's hardcore compliance and risk control game. He's responding to users who are heated about their accounts getting locked down and hit with a barrage of verification requests.

Xu's not pulling any punches. He admits that yeah, the false-positive rates are sky-high and the user experience? Not the best. But hey, it's all about keeping up with those global regulatory vibes.

Get this: OKX's compliance squad is over 600 strong, and they're on a mission to shut down the bad guys—think terrorist financing, human trafficking, drug dealing, money laundering, fraud, and market manipulation. It's like a superhero team for crypto!

Xu's making it clear: these moves are non-negotiable. They gotta meet the legal standards in all the places where OKX is doing its thing.

So, how do they flag the risky accounts? It's a mix of factors, but if you're using a VPN from a no-go zone, you're gonna get extra scrutiny.

And if you're rocking a Tor browser or got links to sanctioned countries or political big shots? Buckle up, because you're in for a document request ride—think proof of address, your whole residency history, and even your job details.

Xu's spilling the tea on "false positives"—those times when legit users get flagged as risky even though they're just living their normal crypto life. He's saying that even the top-notch industry databases and tech can't hit 100% accuracy in this compliance game.

"Many service providers go hard with the 'aggressive identification' strategy, and the regulators? They're all about playing it safe," Xu says. That's why you might find yourself in the wild situation of having to prove your dad is your dad.

OKX isn't messing around. They can drop warnings, demand more docs, freeze your account, or straight-up kick you out if you're breaking the rules.

If it's about sanctions or terrorist stuff, OKX is legally bound to freeze those assets. No ifs, ands, or buts.

They're using a combo of third-party databases and their own slick behavioral analysis models to sniff out the risky accounts.

Xu's keeping it real about their internal compliance game too. Zero tolerance for employee shady business—like insider trading or messing with customer interests.

On the customer side, it's all about verifying identities, monitoring transactions, screening for sanctions, and catching any market manipulation. Their system is on auto-pilot, checking user moves against global watchlists and regulatory rules.

If you get flagged, get ready to cough up docs about your funds, your address, and your job history. But Xu's got your back—he's saying if you're not into illegal stuff, your account's safe with honest submissions.

And don't worry about your privacy—Xu's stressing strict data access controls and top-tier privacy protection for all those docs. Mess up and disclose improperly? That's a one-way ticket to legal trouble city for OKX.