OKX CEO: Exchanges Shouldn't Be Complicit in Token Dilution

IconCryptoNewsTerminal Staff01 Aug, 2024

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OKX CEO: Exchanges Shouldn't Be Complicit in Token Dilution

OKX founder and CEO Jay Xao recently spoke out against the practice of some projects issuing additional tokens and dumping them after listing on exchanges. He stated that exchanges should not be complicit in this behavior, which he believes fleeces users. Xao also acknowledged that OKX has not done a good job with listings in the past. He said that the industry currently lacks supervision related to listing and token dilution. He called for the entire industry to reflect on how to protect the market from these practices. Xao's comments come amid a broader crackdown on cryptocurrency exchanges by regulators around the world. In the United States, the Securities and Exchange Commission (SEC) has been investigating several exchanges for possible violations of securities laws. The SEC has also proposed new rules that would require exchanges to register with the agency and to provide more information about their operations. The crackdown on exchanges is likely to continue in the coming months and years. As regulators take a closer look at the cryptocurrency industry, exchanges will need to take steps to ensure that they are operating in compliance with the law.

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