The OKX cryptocurrency exchange platform has gained popularity in the cryptocurrency ecosystem, but like any platform in this space, it has its weaknesses. In this article, we will discuss the main areas of concern regarding security, regulation, services and customer support of OKX.
OKX, a cryptocurrency-only platform
OKX is an exchange a little different from what we see in the crypto world, and that is: it only works with cryptocurrencies. Directly, it is impossible to buy cryptocurrencies from OKX, since there is no means of payment by bank account or card. There are also no ways to withdraw your cryptocurrencies to an account. From OKX all operations are carried out with cryptocurrencies, which leads to increased operating costs.
For example, if you want to withdraw your BTC from OKX to a European bank account, you will need to triangulate this operation. That takes you to two processes:
- Use an exchange that does allow you to withdraw through a bank account in Europe, which leads to you paying the commission from OKX to the exchange and from the exchange to your account.
- That you use a P2P service, with the additional risks that this entails.
As you can see, the fact that it only operates with cryptocurrencies is not a pro point, it is a con point, since it makes it difficult to access and exit the exchange.
Poor security
To this we must add a central concern for users of any cryptocurrency exchange: security. In this case, OKX faces significant challenges in this regard.
Firstly, the protection of crypto funds is provided by OKX internal solutions, which include the release of Proofs of Reserve, using zero-knowledge proofs (ZKP) that are provided by Komainu, which is a well-known institutional crypto custody service. , built in 2018 and which is part of the digital services of the Japanese bank, Nomura.
This is good news in terms of transparency, Komainu is a well-recognized actor, but it comes at a huge cost: there is no theft insurance. If OKX is hacked, the stolen funds will not be directly replaced because there is no insurance for them, depending exclusively on the good work of OKX. At this point, OKX has precedents of a positive position responding to losses, but in all cases these have been small and there are no guarantees that the exchange can respond in the same way to larger losses.
To this we must add the fact that OKX has been the victim of attacks on several occasions. Not only to your OKX exchanges, but also to your DEX, OKX DEX. An example of the problems that can be expected from this situation can be clearly seen in the two hacks that the exchange suffered in 2020, and in which 8,8 million dollars of its users were affected. Or in 2023, where 2,7 million dollars were lost of the users.
Regulation another critical aspect in OKX
Regulation is a critical aspect for any cryptocurrency exchange as it can affect its legitimacy and operations.
And, in this case, OKX has faced regulatory challenges in several jurisdictions. In 2020, the authorities in China arrested the founder of OKX (then known as OKEx), Star Xu, in connection with alleged illicit activities. This incident highlighted tensions between cryptocurrency exchanges and regulatory authorities, raising questions about OKX's regulatory posture and its ability to operate consistently in complex regulatory environments.
This lack of clarity around regulatory compliance in certain jurisdictions has created uncertainty about OKX's ability to operate sustainably in the long term. Regulatory ambiguity can affect user trust and the operational stability of the platform.
This can be clearly seen in another example: the use of OKX for illegal acts. For example, during the FTX hack many of the funds from this event were mobilized to OKX later generating a wave of prohibited operations in other exchanges because said funds were the result of the hack. In total, they were 157 million have been refunded by OKX and the rest (the hack was more than 600 million) is missing.
Customer service
The quality of services offered by OKX has also been the subject of criticism and concerns among the cryptocurrency community. Users have reported liquidity issues on OKX, especially during periods of high market volatility. This may limit users' ability to execute trades in an efficient and timely manner, negatively impacting their experience on the platform.
OKX has experienced service interruptions at critical times, causing frustration among users. Disruptions may result in financial losses and erode users' confidence in OKX's ability to maintain a reliable operating platform.
Another important point is customer service. The quality of customer service is essential for user satisfaction and effective problem resolution. In that regard, users have expressed concern about slow responses from OKX customer service, which has made it difficult to timely resolve issues and queries. Poor customer support can negatively impact the platform's reputation and user satisfaction.
Some users have criticized the lack of transparency in OKX's communications, especially during important events such as suspension of withdrawals. Lack of clear and timely communication can exacerbate uncertainty and undermine user trust in the platform.
OKX: services with high risk exposure
Now, OKX offers a wide variety of services. Among them traditional trading, futures and perpetuals. In addition, it offers access to P2P trading with more than 80 fiat currencies (not managed directly by OKX) and using 5 different cryptocurrencies for these operations. OKX also offers Launchpad services, crypto loans, staking services (with 9 cryptocurrencies supported), but it lacks a debit card, and many of its operations (e.g. P2P) do not offer any guarantee or legal security.
At this point, the lack of regulation and compliance makes OKX tools and services more prone to legal problems. For example, carrying out a P2P operation on OKX can put you in situations of banking risk due to receiving funds from illegal acts, such as money laundering. Especially if we take into account that OKX is located in Seychelles, a well-known tax haven with a long history of financial crime.
In this sense, operating on OKX carries great risks ranging from cybersecurity, customer service and regulations, something that you should take into account, especially if you want to operate with peace of mind and without these worries.
A better platform: Bit2Me
After this, if you are looking for a better alternative to OKX, Bit2Me is the option you need. Bit2Me offers a wide range of advantages over OKX, including greater security, transparency, regulatory compliance and customer service. Here are some of the main reasons, why Bit2Me is a better alternative to OKX.
Unmatched security
Bit2Me stands out for its rigorous focus on the security of its users. The platform implements cutting-edge cybersecurity measures, including:
- First-level user security: using security measures such as 2FA, continuous monitoring of account operations to detect movements not authorized by the user, and a whole series of protection measures for user accounts.
- Cold storage of funds: Ensures the protection of users' digital assets against cyber threats.
- Regular external audits: To ensure the integrity and security of the platform.
- €150 million insurance: Provides an additional layer of protection for users in the event of an attack.
- Cryptocurrency services without unnecessary risk exposure. Being duly regulated, Bit2Me operates within legal parameters, avoiding offering high-risk services to its users (e.g. derivatives, which are prohibited in Europe). All this without giving up high-demand services such as crypto wallets, spot trading, launchpad, debit cards for cryptocurrencies, staking, cryptoloans, among other services designed for businesses (Commerce) and institutional actors (OTC).
Regulatory compliance
Additionally, Bit2Me is a regulated company that strictly adheres to applicable laws and regulations, demonstrating its commitment to transparency and legality. Your credentials include:
- Registration with the Bank of Spain: Ensures compliance with financial regulations in Spain.
- ISO 27001 and ISO 22301 certifications: They guarantee high standards in information security management and business continuity.
- Adaptation to the EU MiCA Regulations: Demonstrating your commitment to future regulations.
Outstanding customer service
Also, Bit2Me prides itself on exceptional customer service, offering:
- 24/7 Availability: The support team is always accessible to address user needs.
- Proactive Assistance: Ready to help users promptly and effectively with any problem or query.
In short, Bit2Me outperforms OKX in every aspect, offering a superior alternative that guarantees security, transparency, regulatory compliance, and exceptional customer service. If you are looking for a reliable cryptocurrency exchange, Bit2Me is the ideal choice.
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