KEY POINTS
- Ng sees his new role at Bitget as an opportunity to help usher in Bitget's next phase of growth
- He believes compliance is a growth driver since users are drawn to platforms they can trust
- He said regulators should engage "directly" with industry players instead of just gathering feedback
- Bitget is impressed with regulators and governments that have taken an "open-minded approach" to crypto, he said
Web3 company and leading cryptocurrency exchange Bitget recently announced the appointment of Hon Ng as its Chief Legal Officer as the exchange steps up efforts in its commitment to compliance amid the evolving global regulatory landscape.
Ng joins Bitget with over two decades of experience from his work as an award-winning global lawyer. He was formerly the General Counsel and Head of Government Affairs and Policy at crypto titan Binance. He was also recognized by Financial Times as one of the Top 20 In-House Legal Leaders.
In an exclusive chat with International Business Times, Ng talked about how "thrilled" he is to be joining Bitget and the challenges exchanges face due to different requirements in various countries.
An opportunity in a 'unique' setting
Ng said he is excited for his new role at Bitget as he sees it as an "opportunity to build an industry-leading team" within a "unique" crypto platform that has a host of incredibly talented people to "usher in the next phase of Bitget's growth."
He believes that his experience at Binance, wherein he led the crypto exchange's legal department, places him in a "perfect position" to help Bitget pursue a more compliant path forward.
I’m excited to share that Hon Ng is joining Bitget as our new Chief Legal Officer! 🎉
— Gracy Chen @Bitget (@GracyBitget) August 16, 2024
Hon has been recognized by the Financial Times as one of the World’s Top 20 Legal Leaders.
An evolving regulatory landscape
Regulation has long been at center of discussion within the crypto community, with many users seeking clarity from regulators around the world. For Ng, one of the main key challenges in regulation and compliance is "the varying standards and requirements that are applied around the world."
While some countries may have similarities in basic regulations, Ng noted that "each country and each region approaches it slightly differently depending on its history, political and legal development, and general attitude to digital assets."
Ng revealed that at Bitget, the "most stringent standards" have been adopted and applied across the board. "By upholding internationally recognized standards and maintaining high levels of compliance, Bitget positions itself as a trusted exchange," he said. He said that ultimately, such a strategy will prove beneficial since more crypto users will be drawn to a platform that prioritizes the highest compliance standards.
A goal of pitfall prevention
Ng believes that "legal touches every part of Bitget," meaning legal matters affect not just regulation but also licensing, law enforcement cooperation, listings, governance, investments, contracts, intellectual property, and other product-related issues. He said Bitget already has a solid foundation toward building a world-class legal team.
"It's an exciting time, especially with our recent hires who are set to raise our standards across the board. What thrills me most is that the industry needs strong legal leaders to help it grow and avoid pitfalls that could harm the ecosystem and the industry as a whole," he pointed out.
Such pitfalls point to the collapse of former crypto star FTX, who, alongside its affiliate Alameda Research, has been ordered by the court to pay a staggering $12.7 billion to customers and fraud victims who believed in the fallen exchange's promise of wealth and financial freedom.
FTX unfortunately didn't go down on its own as it dragged other companies in the vast crypto realm that were exposed to its fractured business.
A critical aspect of growth
At Bitget, compliance is a top priority, Ng reiterated. "We take our responsibilities very seriously. Our CEO [Gracy Chen] has publicly emphasized that compliance is Bitget's number one focus," he said.
Such a commitment establishes the foundation of everything Bitget does and it is dedicated to continuously improving its compliance program to ensure that it remains dynamic while at the same time responsive to evolving global requirements, Ng added.
Ng links compliance to stronger business as crypto users and partners are given a more robust and sustainable platform where trust is at the core of transactions.
A compliant route to expansion
Bitget has obtained licenses in Lithuania and Poland, and the Web3 company isn't stopping at this point. Bitget continues to engage with key regulators in various European regions. Ng revealed that the company is "either in the process of applying or about to start the application process."
For instance, Bitget is cooperating closely with regulators in the United Kingdom and are looking forward to receiving positive news in the near future. Ng also noted that the European Union's Markets in Crypto-Assets (MiCA) law is a significant step toward a "unified approach" in regulating digital assets in the bloc.
A much-needed collaborative effort
Gathering industry feedback is the traditional route that regulators have taken over the years as they draw up regulations for various industries. However, things have changed. Innovations keep emerging and technology only develops.
Sheila Warren, the CEO of the Crypto Council for Innovation, said regulation of digital assets "requires a forward-thinking and flexible approach that balances innovation and stability" to ensure that consumers are protected and innovation is encouraged at the same time. Notably, her comments were featured at the World Economic Forum's (WEF) Pathways to the Regulation of Crypto-Assets: A Global Approach white paper in 2023.
Ng agrees that a flexible approach is necessary in developing regulations for the crypto space. He believes regulators "should engage more directly" with crypto industry players. "Some participants are better prepared to offer valuable and insightful feedback, and these voices should be identified and given a platform," he said.
Likewise, Ng noted that Web3 companies should engage in consultation processes with regulators and recognize that forums are crucial in discussing the industry's views on new or in-process regulations.
"The sustainability of our industry – for jobs, investments, innovation, and users – is essential, and we all need to work together to ensure this sector remains viable for everyone," he added.
A nod to open-mindedness
Bitget is "especially impressed with regulators and governments who have taken an open-minded approach to digital assets, recognizing that they are here to stay," Ng said. He also acknowledged lawmakers working proactively with industry players to come up with policies appropriate for the burgeoning sector.
Things have been changing for the crypto industry in recent years, as evidenced by the approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs), and Bitget is all for the positive changes brought about by forward-looking responses to the potential of digital assets.
