OKX CEO Defends Compliance Measures Amid User Complaints

OKX, a prominent cryptocurrency exchange, has recently come under scrutiny for its stringent compliance measures, which have led to user complaints about account restrictions and verification demands. In response, OKX CEO Star Xu issued a detailed explanation of the exchange's compliance and risk control procedures, acknowledging the high false-positive rates and suboptimal user experience while defending the platform’s global regulatory obligations.

Xu outlined that OKX’s compliance team consists of over 600 members dedicated to preventing illegal activities, including terrorist financing, human trafficking, drug trafficking, money laundering, fraud, and market manipulation. These measures are necessary to meet legal requirements across various jurisdictions where OKX operates. The exchange flags accounts based on multiple risk factors, with VPN usage from restricted regions being a primary trigger for additional verification requirements. Users employing Tor browsers or having potential ties to sanctioned countries or political figures face heightened document requests, including proof of address, residency history, and employment verification.

Xu described the challenge of “false positives,” where legitimate users are mistakenly flagged as risky despite normal behavior. He noted that even advanced industry databases and technologies cannot achieve 100% accuracy in compliance determinations. “Many service providers adopt an ‘aggressive identification’ strategy, and regulatory authorities often encourage platforms to err on the side of caution,” Xu explained. This justifies why compliant users sometimes receive requests to “prove your dad is your dad.”

OKX maintains the authority to issue warnings, request additional documentation, suspend account functions, or terminate accounts for policy violations. In cases involving sanctions or terrorist activities, the exchange is legally required to freeze related assets. The platform integrates third-party databases with internal behavioral analysis models to identify potential risk accounts. Xu emphasized that the compliance system starts internally with zero-tolerance policies for employee misconduct, including insider trading and customer interest violations.

Customer-facing compliance includes identity verification, transaction monitoring, sanctions screening, and market manipulation detection. The system automatically reviews user activity against global watchlists and regulatory requirements. Users flagged for additional verification receive requests for fund source documentation, address proof, and employment history. Xu assured users that truthful document submission would not compromise account safety for those not involved in illegal activities. The CEO highlighted strict data access controls and privacy protections for submitted documents, noting that improper disclosure would result in severe legal consequences for the platform.