Scope spoke exclusively with Hong Fang, president of OKXthe second exchange cryptocurrencies largest in the world by trading volume, on the growing crypto adoption at the national and regional level, the challenge posed by regulation and its plans to position the exchange platform in the countryalthough, from the outset, he admits that the objective is to ensure that more and more people adopt this type of assets for their personal finances more than the fact of being chosen by Argentine users.
Before joining the Web3 industry in 2019, Hong worked as an investment banker at Goldman Sachs for eight years and then engaged in growth equity investments. He had his first contact with Bitcoin in 2016 and, since then, she became a strong defender of this cryptocurrency. According to him, his objective is the construction of a financial and social network based on trust.
The expert highlights that, in recent years, Crypto users in Argentina have evolved by leaps and bounds compared to other countries in the region. “Before, most only used crypto as a way to avoid inflationinvesting in stablecoins or Bitcoin. But Now they look more experienced and expand their investment alternativesfor example, to the altcoin segment,” he highlights.
Argentina, the crypto power of the region
In line with what Fang suggests, a recent report by Chainalysis, The Blockchain network analysis company ranked Argentina as the main crypto market in Latin America, above Brazil, in estimated inflows of crypto assets between July 2023 and June 2024. According to the document, crypto users in the country They deposited a total of US$91 billion during that period of time, compared to Brazil’s US$90 billion.
Journalist: Could you share your perspective on Argentina and the crypto market?
Hong Fang: I love Argentina. It has a very rich history and vibrant culture. I believe that all of Latin America has great potential for technology-driven products. I hope that some like the ones we are developing in crypto can really improve people’s lives in the future. That is why we are very focused on the region, especially Argentina and Brazil, as key markets in which we want to grow. Crypto adoption in Argentina is quite high, in part, due to historical inflation, which generated a natural demand for Bitcoin, USDT, USDC and other assets. From that perspective, we see very strong organic interest in our products, which motivates us to build locally and reach out to the community to offer better products and services.
Q: How does OKX project its growth in the country?
H.F.: I can tell you that my goals are really high. We aim to be among the top three exchanges in Argentina and, if possible, in the top two. It is an ambitious goal, but we have a great company behind us. Although my team here is local, there are 4,000 OKX employees globally willing to help. In addition, there are Argentine employees in several countries and they always ask me how they can help the market grow. It’s a team effort and We attack all fronts: products, marketing, social networks, etc.. One of our key focuses is the product and we constantly adjust it based on user feedback.
Q: Would you say, then, that the difference between OKX and other exchanges is that it listens to its users?
H.F.: Yes, without a doubt. We conduct surveys all the time. We have a great community on Telegram and we organize events where the product team is present. In March of this year, interviews were conducted with users, ranging from those with little experience to professional traders. We collect a lot of feedback from these sessions to improve our products. Additionally, we work with opinion leaders who help us obtain valuable feedback on our products.
Q: How was the acceptance of OKX among Argentine users?
H.F.: The adoption of OKX in Argentina has been faster than expected. While crypto users in the country usually use other large competitors and local exchanges, there is also a new segment of people who do not yet use any platform. The increase in Bitcoin price is a key factor in attracting usersbut we focus on educating and offering alternative products to facilitate crypto adoption. While we love that users choose us as their platform, the most important thing is that the industry continues to grow, regardless of which exchange they use. The key learning from the last two years is that the industry is strengthening its community, which is beneficial for the entire crypto ecosystem.
Q: Do you have any estimate of how many crypto users there are in Argentina?
H.F.: There is a clear debate around this question. It is estimated that there are between 4 and 6 million users currently. The potential market could reach 8 or 8.5 millionwhich leaves room for between two and three million to join in the coming years.
Q.: The regulatory situation in Argentina is complex, with monetary policies and capital controls. How does OKX analyze the development of regulation?
H.F.: We are still in the process of understanding the requirements, as the regulatory framework is still under development. Some drafts have come out, and we are closely monitoring the situation. We believe that regulation is necessary, especially in markets where money is handled and payments are made. We are pro-regulation when it comes to complying with anti-money laundering (AML/FT) requirements and Know Your Customer (KYC) policies. They are essential for the system to function well. In Argentina, each jurisdiction takes time to define how it wants to regulatebut from our perspective, once there is clarity, we will comply with the regulations.
Q.: How exchanges feel most comfortable with the current government that defines itself as “crypto-friendly”?
H.F.: I don’t think it’s about the government itself, but rather the moment the crypto market is in right now.. In 2024, adoption is much higher than in 2020 or even 2021. The world is moving strongly towards industry regulation because it is a reality and it is happening. I think that there is a great opportunity for countries to develop laws that protect users and promote crypto adoptionbeyond any government. In recent years, Crypto users in Argentina have evolved by leaps and bounds compared to other countries in the region. Before, most only used these assets as a way to avoid inflation, investing in stablecoins or Bitcoin. But, now, they look more experienced and are expanding their investment alternatives, for example, to the altcoin segment. Each user’s journey is gradual, but they are learning and adopting new strategies very quickly.
Source: Ambito
