OKX Takes On Cryptos Biggest Challenge: Rebuilding Trust In The Industry

The consequences have been shocking – according to various reports, billions of dollars have been lost due to security breaches in the crypto industry. In 2023 alone, the total value of crypto assets stolen by hackers exceeded $3bn, with DeFi-related attacks accounting for more than 80 per cent of these losses. High-profile incidents, such as the Euler Finance hack in March 2023, where nearly $200m was stolen, further highlight the vulnerabilities in the DeFi space.

Past major breaches continue to resonate in the industry, like the Ronin Network hack in 2022, where over $600m worth of assets were stolen, and the infamous Poly Network hack in 2021, which saw $610m siphoned before a large portion was recovered. These incidents, combined with more recent attacks, have shaken user confidence and raised serious concerns about the security infrastructure within the crypto ecosystem.

These breaches not only undermine trust but also raise concerns about the security infrastructure of the entire industry, making the demand for transparent and robust security measures, like self-custody and proof-of-reserves, more critical than ever.

This is where OKX comes in. “The responsibility on our side is to ensure that any product we offer has the factors of trust and transparency,” explains Rifad Mahasneh, General Manager of OKX Middle East and North Africa (MENA) region.

This is not just corporate rhetoric. OKX is taking significant steps that many other exchanges hesitate to adopt – offering self-custody to its users. This unique feature empowers traders to hold their assets independently while still having access to the platform’s trading services.

“We believe the future of this industry is built on self-custody,” says Mahasneh. “As a user, you need full trust that your assets are stored in a facility or device you’re comfortable with.”

This high level of control, paired with OKX’s regular proof-of-reserves reports, ensures complete transparency in how assets are managed. These measures form part of OKX’s overarching strategy to establish itself as a secure, transparent, and reliable player in the global crypto market.

The UAE’s supportive regulatory landscape has been key in helping OKX achieve its goals. With a strong commitment to compliance, OKX aligns its operations with local regulations to ensure that users and institutions alike can operate in a safe, well-structured ecosystem.

Rebuilding confidence in crypto

Mahasneh acknowledges that trust in crypto assets has been challenged in recent years, with several market incidents affecting confidence. However, he firmly believes that with the right education and transparency, trust can be restored. “There’s a lack of educational material out there that would help users feel confident in their investments,” he says. OKX aims to close this gap through a series of educational initiatives, designed to inform users about the potential and risks of digital assets.

“We are working hard to provide educational resources to raise the industry’s maturity,” Mahasneh shares. “Our goal is not just to get people trading but to help them understand what they’re getting into.” The focus on education is a long-term strategy for OKX, with the belief that a well-informed user base is the key to success in the UAE.

Mahasneh emphasises that OKX encourages users to “start small” with their investments and gradually build their confidence. This conservative approach speaks to the company’s long-term vision of fostering responsible trading in a volatile and often misunderstood market.

OKX’s custody offering, a new standard for security

One of OKX’s standout features is its custody offering, a critical component of its security strategy. This offering allows users to take full control of their digital assets, providing them with a level of security that sets OKX apart from competitors. “Our self-custody solution is an independent edge for us,” Mahasneh notes. “We see it as a critical part of the future of digital assets, where users have total control.”

Additionally, OKX’s commitment to transparency goes beyond its platform. Mahasneh reveals that the company is actively developing partnerships in the custody space, seeking to expand this service and solidify its position in the market. “We believe in the importance of secure custody solutions, and we’re constantly working to enhance this offering,” he explains.

These efforts are part of a broader vision to integrate digital assets into everyday financial transactions in the UAE. OKX is optimistic that this will be facilitated by the recent announcement from the UAE Central Bank regarding a Dirham-backed stablecoin. “That’s a game-changer for the UAE market,” Mahasneh states. The introduction of this stablecoin could pave the way for digital assets to be used in day-to-day payments, further legitimising the industry.

The gold vs. digital assets debate

In the world of investments, the comparison between traditional assets like gold and digital assets like cryptocurrencies is inevitable. When asked if digital assets are a better investment than gold, Mahasneh offers a balanced view. “I don’t see them replacing each other,” he says. “You could have a portfolio that includes both.”

Mahasneh believes that digital assets offer exciting long-term potential, especially given the maturity and development happening in the space on a day-to-day basis. “What excites me about digital assets versus gold is the way traditional finance is now jumping into the crypto space,” he explains. “This is going to benefit the industry immensely.”

While gold has been a trusted asset for centuries, Mahasneh sees digital assets as an equally viable component of a diversified portfolio. His advice is simple: “Start small, build your confidence, and see how it goes.” By encouraging users to invest modestly and build their knowledge, OKX hopes to make digital assets more accessible to the general public.

A vision for the future

On October 10, 2024, the UAE’s Museum of the Future played host to one of the year’s most anticipated events – a star-studded gala marking the launch of OKX in the UAE. This wasn’t just another corporate gathering; it symbolised the dawn of a new era in the UAE’s fast-evolving cryptocurrency landscape. OKX, with its visionary leadership, cutting-edge technology, and unshakeable commitment to transparency and security, aims to take centre stage in the region’s evolving crypto ecosystem.

“The UAE still has the highest crypto adoption rate, and its visionary regulatory framework gives companies like ours the confidence to expand here,” shares Mahasneh. Already a prominent global player, OKX is setting its sights on redefining the future of digital assets in the Middle East.

For Mahasneh, the launch is more than just a business expansion – it’s personal. His vision is to normalise digital assets as part of everyday life, a mission that aligns seamlessly with the UAE’s forward-thinking regulatory environment. “At the end of the day, the legacy I’d like to see is digital assets becoming a day-to-day activity,” he reflects. “We believe in this space, but many people still don’t know where to start. Our job is to make it easier for them.”

Mahasneh’s ultimate goal is to leave a legacy where digital assets are not only trusted but integrated into a well-regulated, secure financial ecosystem. “We’re focused on building an industry that is safe, successful, and efficient,” he adds.

The road ahead

Looking ahead, OKX has big plans for the UAE. The company’s local order book, which allows users to trade directly in AED, is just one of the many innovations it is bringing to the region. This feature streamlines the trading process, providing users with faster settlement periods and a seamless experience. “We’re excited about offering a local order book for AED-to-Bitcoin, Ethereum, and USD trades,” Mahasneh reveals.

This localised approach not only benefits retail traders but also institutional clients who value security and efficiency. Moreover, OKX is one of the first crypto exchanges in the UAE to offer regulated derivatives products, a significant step in attracting institutional investors.

“This is a game-changer for institutions that have been hesitant to enter the market due to regulatory concerns,” Mahasneh explains. With the backing of a regulated framework, institutional clients now have the confidence to participate in the UAE’s crypto boom.

OKX is also exploring partnerships and collaborations with other fintech and blockchain companies to further solidify its position as a key player in the UAE’s digital asset ecosystem.

“We see ourselves not only as a retail and institutional player but also as an infrastructure player,” Mahasneh notes. The company’s ambition is to be at the forefront of the digital finance revolution in the UAE, providing liquidity and support to other market participants.

As the UAE continues to emerge as a global hub for blockchain and cryptocurrency, OKX is positioning itself as a leader in the region. With its focus on transparency, trust, and education, the company is poised to lead the charge in the digital finance revolution. Under Mahasneh’s leadership, OKX is not only building a business but also creating a legacy – one that will leave a lasting impact on the UAE’s financial landscape.

With the successful launch at the Museum of the Future now behind them, OKX is ready to move forward, shaping the future of digital assets in the UAE and beyond.