As a global cryptocurrency platform, OKX is committed to providing a transparent, safe, and reliable environment for our customers. A significant part of that commitment is compliance with all applicable rules and regulations where we operate, and we maintain a robust, risk-based compliance program that governs all relevant aspects of our business operations. Central to OKX's token listing process is a risk-based compliance review of each asset considered for listing on the platform. In some jurisdictions, a separate legal review is also required for assessing a token's eligibility for listing. In this blog, we will focus on the primary compliance considerations in our listing review.
Compliance Review for Token Listing
Our Compliance team researches and reviews each token to make sure it meets our listing standards. In addition, our Compliance team maintains an ongoing review process to assure continuous compliance with those standards. Each token has a unique compliance risk profile, which is why tokens are assessed individually on a case-by-case basis.
The following criteria are used to assess a token's eligibility for listing consideration:
Anonymity-Enhanced Cryptocurrencies: OKX does not list “privacy tokens” because these types of tokens can interfere with or even prohibit our company’s ability to properly monitor and report suspicious activity. Privacy tokens can also inhibit our ability to effectively and timely respond to law enforcement requests for information.
Sanctions: OKX prohibits engaging with tokens or projects that are connected, directly or indirectly, to sanctioned individuals or entities in any jurisdiction in which OKX operates. OKX complies with sanctions legislation and implementing regulations and guidance in all applicable jurisdictions, including those administered by the United States Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) and the United Nations Security Council (“UNSC”).
OKX Terms of Service Violations: OKX does not list tokens which promote or are involved with businesses which violate our company’s Terms of Service agreement. Some examples of prohibited businesses include controlled substances such as marijuana and pharmaceuticals, guns and firearms, and businesses/projects with a history of fraudulent or improper conduct.
If a token is determined to be eligible for listing, our Compliance team further considers the following factors as part of the assessment:
Money Laundering and Terrorist Financing Risk: OKX does not list tokens which are actively engaged in the laundering of illicit funds or financing of terrorist organizations or activity.
Consumer Protection: While we strive to be a platform that supports emerging projects, it is important to consider the potential risks of fraudulent behavior, scams and rug pulls relating to new projects with limited or no prior business activity. In order to limit these risks, OKX conducts extensive research on each token, looking at available audit reports, funding history and known financial information on the token project to identify known risk factors.
Reputational Risk and Adverse Media: Having a clear understanding of the operating team and entities behind the token can shed light on whether the project is controlled by bad actors. While OKX encourages users to make independent decisions on which tokens to purchase, we strive to provide a suite of assets that do not directly expose users to known risks. To that end, OKX conducts adverse media reviews and studies the prior business history of the token team leaders to identify any red flags.
In addition, some material information can alter the risk profile of a listed asset, requiring further compliance review or resulting in the token's suspension or removal from the OKX platform.
Conclusion
While no review process can eliminate all risk factors relating to a specific token, OKX seeks to list high-quality tokens that meet baseline standards, while at the same time offering a wide range of digital assets to its global customer base. We hope this blog has shed some light on how OKX determines which tokens it chooses to list on its exchange.
Disclaimer: No token review process can mitigate all risks. The fact that OKX conducts a compliance review of each token prior to listing does not guarantee or create any warranties as to the performance, soundness or viability of these tokens. The content herein, including any external links, are for general informational purposes only and is not intended to provide (i) investment advice; (ii) a recommendation, offer, or solicitation to buy, sell, or hold any crypto asset or to engage in any specific trading strategy; or (iii) investment, financial, accounting, legal, or tax advice. Digital assets, including stablecoins, involve a high degree of risk, and their value can fluctuate considerably. The price and performance of digital assets are not guaranteed and may change without notice. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition and risk tolerance. Please consult a legal, tax, and/or investment professional for questions about your specific circumstances. For further details, please refer to our Terms of Use and Risk Warning.
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