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Cryptocurrency
exchange Bitget has ramped up its regulatory compliance efforts with the recent
appointment of Hon Ng as its new Chief Legal Officer. Ng, who previously held a
similar role at industry giant Binance, brings a wealth of experience in
navigating the complex regulatory landscape of digital assets.
In an
exclusive interview with Finance Magnates, Ng outlined his vision for enhancing
crypto compliance strategies while fostering innovation in the rapidly evolving
digital asset space. He emphasized the importance of balancing regulatory
requirements with technological advancement.
Compliance Doesn’t Have to Be the Enemy of Crypto
Innovation
Hon Ng’s
career trajectory is nothing short of remarkable. As a seasoned legal
professional with over two decades of experience, Ng has overseen high-profile
transactions, including a $500 million acquisition of a strategic stake in X
(formerly Twitter) in consortium with Elon Musk
His resume
also boasts a three-year stint as General Counsel & Head of Government
Affairs at Binance, the world’s largest cryptocurrency exchange.
While Ng
has since transitioned to Bitget, he continues to pursue another passion: football.
Intriguingly, he serves on the Legal Committees of both the Asian and East
Asian Football Federations and represents the Hong Kong Football Association. It’s
worth noting that one of Bitget’s global ambassadors is none other than football
legend Lionel Messi. Coincidence?
Jokes aside, Finance Magnates’ conversation with Ng focused not on his love for the ball but on his expertise in compliance, law, and cryptocurrencies. He
acknowledges that proponents of decentralization often view cryptocurrency
market regulation as incompatible with maintaining the industry’s innovative
spirit.
“Strong
compliance doesn’t have to stifle innovation—in fact, it can enable it,”
Ng stated. “When a platform like Bitget builds a solid compliance
framework, it creates a foundation of trust. This trust, in turn, gives us the
freedom to explore new ideas and develop cutting-edge solutions.”
Ng
highlighted Bitget’s proactive approach to compliance, including mandatory Know
Your Customer (KYC) procedures, sanctions compliance, and transaction
monitoring. He plans to build on these existing measures, drawing from his
experience at Binance where he spearheaded global licensing efforts and
regulatory dialogue.
“I had developed the legal team and pushed forward an agenda that you can still see today, such as licensing. All of these things helped improve the industry and
made it safer for users,” added Ng. “I intend to build on that.”
Lack of Regulatory Consistency
The crypto
industry faces significant challenges in regulatory consistency across
jurisdictions, according to Ng. “Each
country has its own set of rules. This is quite a big challenge for exchanges
that operate globally.”
To address
this, Bitget is adopting a unified approach that aims to meet the highest
global standards.
“We
implement mandatory KYC across all of our markets, comply with sanction
requirements, and conduct thorough transaction monitoring,” Ng explained.
“These efforts help us proactively meet legal requirements and ensure
we’re already operating at the highest standards.”
Engaging
with regulators is also a key part of Bitget’s strategy. Ng described the
exchange’s approach as constructive, involving face-to-face discussions to
understand regulatory expectations in different markets.
“We are
thrilled that the conversations so far have been very positive about the way
those regulators wish to develop their crypto frameworks and how an exchange
like Bitget fits into that masterplan,” Ng explained.
“US Could Benefit from
More Clarity and Consistency”
Ng’s appointment
comes at a time when the cryptocurrency industry is experiencing increased
scrutiny and regulatory attention, especially in the US.
While
working for Binance, the current Chief Legal Officer frequently dealt with
various legal issues around the world. These situations demonstrated the
inconsistency in regulations he mentioned: the exchange could operate fully
legally on one continent, while on another, regulators might deem its business
model non-compliant.
However, he
sees current regulatory developments as indicative of the increasing
convergence between traditional finance and the crypto world. “In the past
3 years, we have seen a rapid changing-of-the-narrative,” Ng observed.
“Since the SEC approved Bitcoin ETFs, we have seen waves of traditional
finance companies become adopters for the very first time. This is exciting as
it brings a whole new audience and dimension into this space.”
He further
notes that there is still much to be done, stating, “The US could benefit
from more clarity and consistency.” He argues that the lack of clear
guidelines on how different digital assets are classified creates uncertainty,
making it challenging for businesses to operate confidently and for investors
to make informed decisions.
“I have
always thought that proactively tailoring regulations so that it is ‘fit for
purpose’ is a better approach than trying to fit new technologies into existing
regulatory frameworks that may not meet the challenges of this new period of
growth,” added Ng.
How to Push Crypto into the Mainstream
Ng believes
that broader acceptance of crypto exchanges hinges on prioritizing compliance,
ensuring robust security measures, and educating the public about digital
assets.
“The
future of crypto depends on finding the right balance between innovation and
compliance,” Ng asserted. “As the industry grows, so will regulatory
scrutiny, and only those platforms that can innovate responsibly will
thrive.”
Bitget is
continuously exploring new ways to market its products. For example, at the
beginning of this month, they introduced a Task-to-Earn model aimed at
encouraging financial influencers to promote products available on the
exchange. Through this initiative, participants could earn up to $5 million within a year.
“Exchanges
must operate with integrity,” Ng believes. “This means being
transparent about business practices, fees, and any potential conflicts of
interest. It also means being responsive to user concerns and providing a high
level of customer service.”
This article was written by Damian Chmiel at www.financemagnates.com.
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