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Xu explains that DEXs and CEXs serve fundamentally different functions.
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“I think exchanges should give access to everything,” says Changpeng Zhao.
The CEO of the OKX exchange, Mingxing “Star” Xu, joined the growing questions against Changpeng Zhao (alias CZ), the founder of Binance.
In Xu’s opinion, CZ is trying to deflect its commitments by suggesting an «openness» in cryptocurrency exchanges, whether centralized or not. And he stated that OKX and Binance maintain a “long-standing difference” in their values as companies in the sector.
Xu’s question arises after a comment by Zhao published in X, where he proposed that centralized exchanges (CEX) and decentralized exchanges (DEX) open to receiving any type of token, as usually happens recurrently in DEXs.
According to CZ, “exchanges should have access to everything.” “Each exchange platform has its own listing framework (which may change over time),” he said.
The founder of Binance questioned whether it is acceptable for DEXs to include any tokens, such as memecoins and other high-risk cryptocurrencies; at the same time that it is criticized that a CEX does the same.
Given this, Xu came forward and clarified that the idea that exchanges list any asset, regardless of its nature, «is a false equivalence.»
DEXs and CEXs serve fundamentally different functions. Open and permissionless access belongs to DEXs; Responsibility, standards and accountability belong to the CEX. A DEX is a purely self-custody tool. The service provider is not an intermediary and does not control user funds. Users who interact with DEXs understand, or should understand, that they are using a tool and taking full responsibility for their actions.
Mingxing “Star” Xu, CEO of OKX.
“In contrast,” Xu continued, “CEXs guard user funds, just like banks.” «Therefore, they have clear obligations regarding the prevention of money laundering, sanctions compliance, fraud prevention and consumer protection.»
The executive, who runs the 4th largest cryptocurrency exchange in the market by trading volume, explained that CEXs are not neutral. This is because they «intermediate trust, have operational responsibility and, therefore, their duty is to protect users.» «Not just listing everything that exists,» he commented.
Xu also emphasized that confusing DEX and CEX is not openness. «It’s an attempt to avoid responsibility.» “This fundamental distinction reflects a long-standing difference in values between OKX and Binance,” he concluded.
Xu’s criticism of CZ’s comments is not isolated. They join the expressions and questions against the Chinese-Canadian businessman, who has come to be accused of being a fraudster and market manipulator due to some factors in the cryptocurrency ecosystem, as NoticiasVE has reported.
However, CZ has defended himself. In X he has sent messages suggesting that there is a FUD (fear, doubt and uncertainty) campaign against him and against the exchange. He even distanced himself from the accusations in a public speech and described such accusations as “far-fetched.”