Our guest is Lenox Lide, director of Financial Market said, okay, x and we wanted to take a closer look at the crypto space. So there's a lot we don't know about what has happened with f t X uh and we will surely find out more as as time goes by. One of the things I'm curious about, so f t X was the third biggest crypto exchange Finance, so was number one, coin base number two. Does what's happened to f t X make the others look stronger or does
everybody look weaker because of this? I think I would say everybody looked weaker because Aptic is one of the top t exchanges. Um so I mentioned that their top breaders in terms of lots of different kind of matrix. So this act is kind of I was saying, drama obviously underminc the reptation and connitence of the industry, especially to the centralized exchanges. Yeah soolutely, and it really in the underpins the need for more regulation. To the concern
here is is could who could be next? I mean, is this kind of like a Lehman moment for crypto? It's very close to element moments for crypto. So it's a look like a really big counter party because of over average or trading. So a lot of people that involve currently I don't say ethics right now is bankrupts or five for bankruptcy, but I went I do now
is a lot of counterparty, which is a client. I love training for amost of crypto cryptic companies where is money of crypto fund is being locked up and within ethics right now, whether or not there will be any contagious effect. That's some of the firms and an institutional we've experienced um liquidity, crunge of liquidity issues we don't
know yet. Yeah, you know, he would would probably not want to see a lot more government regulation, although I'm sure there are plenty who would like to see that. But but at least, but at least the board's oversight
should be there, and that's more like self regulation. But in this case, I think you have the two founders and one employee and it just didn't turn out to be enough to really oversee the operations of f t x mm hmm, yeah you sir, this has to I know they are operating in the very very very low uh Now, hack CON's factions they like to they like
to do something like this. So so it's very difficult to to to imagine that how they operate in tonally whether or not they have a selfficient segregation of power. But but back to your question, in terms of governments or in terms of regular well for instance, for instance co mingling of funds, I mean, this is something that there should be I mean the boards should have said this is absolutely unacceptable. Yeah, I'm I'm not particularly sure
that there's a coming rober client money. Maybe it just Elemator is one of the biggest clients of the f t X so they do have some kind of segregation of segregation of money. But but also they have oversizes of all kind of credit facility to one client, one single client. Can you tell us a little bit more about I guess what you know with relation to f t X UM do we know or do we understand
that you had been speaking to sam Banquant Freed. No, just recently, not not frequently, just recently that we understand. We're not stud that they might have liquid issues around them Rember eat and they're looking forward or not. We can have strategic partnerships in by by actually helping I'm a little about in terms of short term liquids. Yeah, Lennox, I'm curious what your own kind of safeguards will be
from here. I mean, are there some steps that you're taking as a result of this uh uh to to reassure markets about what you guys do. Obviously, the industry, not just okay x is just is right now the highest priority the substantially increase our transparency, especially the fact that they prove that the user that's every token that's you deposits on the okay x u token that you see on the okay x apps percent backed by a
physical token on behind. What we can what can do right now is to employ a third party auditor and arrange a proof of we serve at the moment, it's going to happen within their days. Now, let's talk a little bit more about okay x. You've got a Dubai license you're taking on Singapore to for for the crypto crown. Here. Where do you see the industry in the next sort of five years. I think the industry will be think at least starting from this year, starting with this incidental
next year's uh we see two trend. The first trend is the need. The industry would be looking for transparency and segregation, especially of car money. The third part would be the regulations are mostly ready. I mean the regulation across many manager restactions, getting a lot more robust framework on what related to an exchange business like us about how we can fit in in terms of license m du Bai, Bahamas, Singapore, Hong Kong. We all see different
kind of framework is ready. It's relatively ready for us to apply, say okay ex Um. Maybe other major exchanges they won't just in corproverse on in some offshore entity jurisdiction anymore. They were going to be regulated, uh in in multiple jurisdiction. How bad do you think the fallout will be from ft X with other companies that, let's say have a heavy exposure there. Yeah, the woman is said that, sir, they have a kind of a whole
loophouse around. I don't know, maybe it's seven to nine billions, so so that is their col money or that is maybe some of the some of the some of the laws related to Alamator. So I think that dust is yet to be settled, and we need to know that who will be I think the industry might need to know that who will be the biggest creditors related to optics slash alimator of ALS alright, thanks very much for
joining us. Appreciate the time Mellen. Excellent ex slide. The Director of Financial Markets said, okay x