OKX Head: Regulatory Pressure on Binance is Key to Healthy Competition in the Crypto Industry
OKX founder and CEO Star Xu made a surprisingly bold statement: the global regulatory pressure on Binance is one of the best things for the entire crypto industry. In his view, the era of "regulatory arbitrage," which for years gave the world's largest exchange an unfair advantage, is coming to an end.
Why is regulating Binance a good thing?
The discussion was sparked by information that the Greek regulator HCMC may reject Binance's application for a MiCA license. Without it, the exchange risks losing the right to serve clients in the European Union from July 1, 2026. OKX itself has already obtained a MiCA license through Malta, so Xu speaks from the position of a direct competitor.
Xu emphasizes that over the past ten years, competition in the crypto sector has largely been defined by regulatory arbitrage. Companies operating with minimal restrictions gained an unfair advantage over those investing in licenses, compliance, and risk management. Now, as regulators bring Binance up to uniform global standards, this advantage is disappearing. Competition, according to Xu, should be based on products, technology, execution, and trust, not on the ability to circumvent rules.
What is the accusation against Binance?
The head of OKX claims that Binance's success was built not only on technology and liquidity but also on the ability to create and promote narratives around crypto assets. The exchange built a vast ecosystem of founders, former employees, venture funds, and related projects that received privileges in the form of listings and access to a retail audience. At the same time, he says, many tokens lost more than 95% of their value after launch.
Xu describes this as a "self-sustaining cycle": when one narrative fades, a new one immediately emerges; insiders and early participants reap disproportionate benefits, while losses fall on retail investors. Instead of losses from the previous cycle, users are urged to focus on potential profits in the next one.
Xu specifically criticized Binance's compliance, calling it a shift "from refusing regulation to paper regulation." He recalled that after a series of enforcement actions and a four-month prison sentence for founder Changpeng Zhao, the company changed its public stance, presenting itself as "one of the most law-abiding in the industry." However, he says, what matters is not the number of hired specialists, but whether the programs are aimed at managing real risks or merely creating the appearance of legal compliance.
Xu also raised the issue of shifting regulatory risks to separate entities, pointing to Binance's exit from Russia through the sale of its business to CommEX and the exchange's connection to the Aster project, whose operating model is considered similar to Hyperliquid, previously criticized by Changpeng Zhao.
Expert opinion: Star Xu's statement is not just criticism of a competitor, but a clear signal to the market. The era of the "Wild West" in cryptocurrencies is ending. Now, winners will be determined not by the ability to circumvent laws, but by product quality, transparency, and real accountability to users. This is a painful but necessary stage in the industry's maturation.