TLDR

OKX has defended its aggressive compliance procedures following complaints about strict identity verification requirements.
The exchange uses both internal behavior models and third-party databases to detect potential high-risk accounts.
Users flagged for risk may need to submit documents including proof of address, employment history, and fund sources.
CEO Star Xu stated that regulatory obligations require the platform to implement strict measures across all jurisdictions.
The platform can freeze assets and suspend accounts if links to sanctions or criminal activity are detected.

Crypto exchange OKX has justified its aggressive compliance approach amid rising complaints about account restrictions and identity verification demands. CEO Star Xu addressed growing criticism, stating that strict verification is necessary to fulfill global regulatory obligations. The company’s enforcement efforts target criminal activities but have also flagged ordinary users through complex automated systems.

OKX Strengthens Internal and External Compliance Frameworks

OKX has deployed more than 600 employees to manage its compliance and risk control processes across all operating jurisdictions. These staff members monitor activities to prevent crimes, including money laundering, terrorist financing, drug trafficking, and market manipulation. The exchange utilizes internal behavior models and external databases to detect high-risk accounts.

Risk triggers include using VPNs from blocked locations, anonymous browsers like Tor, and links to sanctioned nations or officials. Once flagged, users may be asked for extensive documents such as proof of residency, employment history, and income sources. According to Xu, these requests apply even to users with no history of suspicious activity.

The platform follows an “aggressive identification” method supported by both internal policies and external regulatory expectations. OKX claims that false positives are a known consequence of rigorous compliance enforcement. However, they assert that a conservative screening method helps avoid penalties and protects broader user integrity.

Users Face Verification Measures Amid Global Scrutiny

Xu confirmed that flagged users may be required to provide additional documentation regardless of their transaction volume or geographic origin. These may include source of funds records, residential proof, and historical employment verification. OKX does not guarantee account functionality during pending reviews.

Verification demands increase in frequency if automated tools identify geographic or behavioral risks during routine checks. Xu maintained that legal obligations require complete account freezes for activities linked to terrorism or sanctioned entities. He added that accurate submission of requested documents typically leads to issue resolution for compliant users.

The platform applies universal verification rules to maintain a consistent risk posture across all regions it serves. Compliance systems automatically scan transactions and identities against global watchlists in real-time. The exchange’s data protection team ensures strict access controls to user-submitted materials and limits employee access.

OKX Implements Zero-Tolerance Policies for Internal Misconduct

Internally, OKX enforces a zero-tolerance stance on employee violations like insider trading or preferential treatment of clients. Xu explained that regulatory compliance begins with employee accountability before extending to external user monitoring. Staff activities are tracked, and any breach results in disciplinary action or termination.

亲爱的用户：

对于由此带来的不便，我们深感歉意。我们认识到在合规风控与运营执行过程中，仍存在误判率较高、信息收集流程体验不佳等问题。OKX团队正在全力以赴优化相关流程，力求尽快改进。… https://t.co/TrWoxHHam0

— Star (@star_okx) July 5, 2025

The company believes that a strong internal compliance foundation supports the accuracy of its external controls. It also ensures that users’ information is handled with privacy and within strict legal frameworks. Xu warned that unauthorized use or leaks of customer data would lead to severe legal consequences.

 

The post OKX CEO Defends Risk Protocols as Users Protest Strict ID Demands appeared first on CoinCentral.

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Filed under: News - @ July 6, 2025 1:15 am