“Strong Compliance Doesn’t Have to Stifle Innovation”: Bitget's Chief Legal Officer

Cryptocurrency exchange Bitget has ramped up its regulatory compliance efforts with the recent appointment of Hon Ng as its new Chief Legal Officer. Ng, who previously held a similar role at industry giant Binance, brings a wealth of experience in navigating the complex regulatory landscape of digital assets.

In an exclusive interview with Finance Magnates, Ng outlined his vision for enhancing crypto compliance strategies while fostering innovation in the rapidly evolving digital asset space. He emphasized the importance of balancing regulatory requirements with technological advancement.

Compliance Doesn't Have to Be the Enemy of Crypto Innovation

Hon Ng's career trajectory is nothing short of remarkable. As a seasoned legal professional with over two decades of experience, Ng has overseen high-profile transactions, including a $500 million acquisition of a strategic stake in X (formerly Twitter) in consortium with Elon Musk.

His résumé also boasts a three-year stint as General Counsel & Head of Government Affairs at Binance, the world's largest cryptocurrency exchange.

While Ng has since transitioned to Bitget, he continues to pursue another passion: football. Intriguingly, he serves on the Legal Committees of both the Asian and East Asian Football Federations and represents the Hong Kong Football Association. It's worth noting that one of Bitget's global ambassadors is none other than football legend Lionel Messi. Coincidence?

Jokes aside, Finance Magnates' conversation with Ng focused not on his love for the ball but on his expertise in compliance, law, and cryptocurrencies. He acknowledges that proponents of decentralization often view cryptocurrency market regulation as incompatible with maintaining the industry's innovative spirit.

“Strong compliance doesn't have to stifle innovation—in fact, it can enable it,” Ng stated. “When a platform like Bitget builds a solid compliance framework, it creates a foundation of trust. This trust, in turn, gives us the freedom to explore new ideas and develop cutting-edge solutions.”

Ng highlighted Bitget's proactive approach to compliance, including mandatory Know Your Customer (KYC) procedures, sanctions compliance, and transaction monitoring. He plans to build on these existing measures, drawing from his experience at Binance where he spearheaded global licensing efforts and regulatory dialogue.

“I had developed the legal team and pushed forward an agenda that you can still see today, such as licensing. All of these things helped improve the industry and made it safer for users,” added Ng. “I intend to build on that.”

Lack of Regulatory Consistency

The crypto industry faces significant challenges in regulatory consistency across jurisdictions, according to Ng. “Each country has its own set of rules. This is quite a big challenge for exchanges that operate globally.”

To address this, Bitget is adopting a unified approach that aims to meet the highest global standards.

“We implement mandatory KYC across all of our markets, comply with sanction requirements, and conduct thorough transaction monitoring,” Ng explained. “These efforts help us proactively meet legal requirements and ensure we're already operating at the highest standards.”

Engaging with regulators is also a key part of Bitget's strategy. Ng described the exchange's approach as constructive, involving face-to-face discussions to understand regulatory expectations in different markets.

“We are thrilled that the conversations so far have been very positive about the way those regulators wish to develop their crypto frameworks and how an exchange like Bitget fits into that masterplan,” Ng explained.

“US Could Benefit from More Clarity and Consistency”

Ng’s appointment comes at a time when the cryptocurrency industry is experiencing increased scrutiny and regulatory attention, especially in the US.

While working for Binance, the current Chief Legal Officer frequently dealt with various legal issues around the world. These situations demonstrated the inconsistency in regulations he mentioned: the exchange could operate fully legally on one continent, while on another, regulators might deem its business model non-compliant.

However, he sees current regulatory developments as indicative of the increasing convergence between traditional finance and the crypto world. “In the past 3 years, we have seen a rapid changing-of-the-narrative,” Ng observed. “Since the SEC approved Bitcoin ETFs, we have seen waves of traditional finance companies become adopters for the very first time. This is exciting as it brings a whole new audience and dimension into this space.”

He further notes that there is still much to be done, stating, “The US could benefit from more clarity and consistency.” He argues that the lack of clear guidelines on how different digital assets are classified creates uncertainty, making it challenging for businesses to operate confidently and for investors to make informed decisions.

“I have always thought that proactively tailoring regulations so that it is ‘fit for purpose’ is a better approach than trying to fit new technologies into existing regulatory frameworks that may not meet the challenges of this new period of growth,” added Ng.

How to Push Crypto into the Mainstream

Ng believes that broader acceptance of crypto exchanges hinges on prioritizing compliance, ensuring robust security measures, and educating the public about digital assets.

“The future of crypto depends on finding the right balance between innovation and compliance,” Ng asserted. “As the industry grows, so will regulatory scrutiny, and only those platforms that can innovate responsibly will thrive.”

Bitget is continuously exploring new ways to market its products. For example, at the beginning of this month, it introduced a Task-to-Earn model aimed at encouraging financial influencers to promote products available on the exchange. Through this initiative, participants could earn up to $5 million within a year.

“Exchanges must operate with integrity,” Ng believes. “This means being transparent about business practices, fees, and any potential conflicts of interest. It also means being responsive to user concerns and providing a high level of customer service.” This article was written by Damian Chmiel at www.financemagnates.com.