During 2024 Korean Blockchain Week (KBW), Professor Kang Li, Chief Security Officer of CertiK, was interviewed by Korean media outlet, E-Today. In the interview, Professor Kang discussed how recent regulatory developments have created new opportunities for the cryptocurrency industry. He also expressed concerns about security challenges faced by the blockchain ecosystem, and emphasized the importance of addressing these issues for long-term development and establishing trust.
Below are some highlights from Professor Kang’s interview on September 3, 2024, translated from its original Chinese version.
“We are at a pivotal moment in the history of currency and financial systems. In the ever-changing regulatory environment, we see unprecedented opportunities,” said Professor Kang. He noted that recent cryptocurrency regulatory developments have brought new opportunities for businesses: “Traditional financial regulatory bodies are concerned about the risks associated with cryptographic assets, including volatility, regulatory challenges, and potential misuse. However, innovators see cryptographic assets as a transformative technology that can drive financial innovation, enhance financial inclusion, and bring new opportunities for economic growth. Investors are eager for high returns, while regulatory bodies are reluctant to easily disrupt the systems that have been established over the years. The current situation can be aptly described as a ‘tug of war.’”
As Professor Kang noted, an example of this is the SAB 121 Act, which requires publicly traded companies in the U.S. to include and disclose customer-managed cryptographic assets on their balance sheets. Although U.S. Congress initially decided to repeal this act in June 2024, President Biden exercised his veto power to prevent the repeal. Professor Kang explained, “The SAB 121 Act, as a regulation dealing with digital asset accounting and reporting, reveals the challenges of integrating cryptocurrencies into the existing financial framework.”
Headquartered in New York, CertiK does not have direct communication with the U.S. political sphere or presidential campaign teams, but maintains close contact with global alliances committed to promoting the popularization of blockchain technology, as well as financial regulatory bodies around the world. One of CertiK’s goals is to address the evolving regulatory environment for cryptographic assets and to provide solutions for its clients. For example, CertiK's compliance and risk management platform, SkyInsights, helps clients meet new regulatory requirements through on-chain transaction monitoring, risk assessment, and reporting features.
Professor Kang also commented on the global implications of these regulatory changes, stating, “In accordance with the EU’s MiCA regulations and South Korea’s latest user protection laws, cryptographic asset projects and exchanges must comply with strict compliance standards. As regulatory requirements become increasingly complex and the scale of assets handled by businesses grows, the demand for robust compliance solutions like SkyInsights will continue to grow.”
He added, “The push for regulation is not limited to the United States. We have recently been working closely with the Japanese Financial Services Agency and are also helping clients meet local financial regulatory requirements and address their challenges in various regions such as Malaysia, Turkey, and Dubai.” In South Korea, for instance, which is one of CertiK's main markets, industry participants are collaborating with major domestic gaming companies and cryptographic asset exchanges.
Regarding the U.S. presidential election, Professor Kang Li said, “Whether it’s Trump or Harris, although their approaches differ, both have shown a keen interest in cryptographic assets. I believe this is closely related to the large user base of cryptographic asset holders in the United States. The decisions of both candidates may be aimed at winning votes, but more importantly, cryptographic assets have reached a point where they cannot be ignored.”
He also expressed his concerns: “Although the industry is gradually gaining regulatory clarity and new opportunities, the security field still faces severe challenges. Phishing attacks, private key leaks, and other security vulnerabilities have led to significant financial losses. Addressing these security risks is crucial for the long-term growth of the cryptographic asset ecosystem and maintaining trust.”
