Web3 Entrepreneur Interview: Building the Compliance Path for "Blockchain Alipay"

A new wave is sweeping through the Web3 payment sector. How can we reshape the boundaries of payment and finance in a decentralized world? How can compliance and innovation seek balance in a high-risk arena? In this episode, we invite Diana, the General Counsel of Infini, to share her journey from Peking University Law School to Web3 entrepreneurship, revealing Infini's compliance practices in creating the "Blockchain Alipay" and providing entrepreneurs with a legal perspective on avoiding pitfalls.

Diana is currently the General Counsel and Chief Compliance Officer at the Web3 payment startup Infini. She holds a bachelor's degree from Peking University Law School and a master's degree from the University of Pennsylvania, and she has passed the New York State Bar Exam. Prior to joining Infini, Diana worked for three years at a law firm in the United States and served as a legal advisor for the Web3 digital division at a leading payment company in China.

Career Transition from Law Firm to Web3

Diana shared her career transition from a law firm to Web3. During her time working at a law firm in the United States, the business significantly shrank due to the economic downturn and the impact of Sino-U.S. relations. In 2022, Diana was introduced to the cryptocurrency field and was attracted by the rapid growth and vibrant atmosphere of the Web3 world. She believes that Web3 focuses on ability rather than credentials, which is in stark contrast to the "involution" of law firms.

In the end, Diana decided to step out of her comfort zone, first joining a payment company as a legal advisor to gain experience, and then joining Infini to embark on her entrepreneurial journey. She stated that the openness and creativity of Web3 are very suitable for her unconventional personality.

The Essence of PayFi and Its Integration with CeFi

Diana explained that PayFi (Payment Finance) is about reconstructing payments and traditional financial tools using Blockchain technology, integrating them into everyday scenarios. Its core value lies in enhancing the efficiency of capital flow, reducing transaction costs, while also having strong inclusivity. Compared to traditional bank transfers, PayFi can achieve real-time arrival, with very low handling fees.

PayFi and CeFi (Centralized Finance) are not in a replacement relationship, but rather a fusion and multiplication. The advantages of CeFi lie in compliance and user trust, while the advantages of PayFi lie in flexibility and inclusiveness. Diana believes that in the future, PayFi will become a "lubricant" to bring CeFi closer to the public, and the two will collaboratively promote the development of inclusive finance.

Infini's Vision and Compliance Practices

Infini's vision is to become "the Alipay of the Web3 industry", creating a user-friendly payment platform that is compatible with CeFi features, allowing Web2 users to easily enter the Web3 world. Diana emphasized that their goal is to achieve mass adoption, not a short-term token issuance project.

Infini's business is mainly divided into two major sectors: payment issuance and asset management. In terms of compliance, the payment business needs to conduct KYC and anti-money laundering checks to ensure that transactions do not involve black and gray list countries. The asset management business must meet the stringent regulatory requirements of the Hong Kong SFC.

Diana stated that the company is in communication with the Hong Kong SFC and Singapore regulators, and will soon officially announce its own license to further strengthen its Compliance.

Balancing Convenience and Security

In balancing convenience and security, Infini adopts a CeFi model, achieved through a minimalist interface, third-party custody, and compliance support. Diana believes that ordinary users do not need the level of security provided by cold wallets, and Infini's custody + audit model can accommodate both convenience and security.

Lessons Learned from Cryptocurrency Theft Incidents

Diana stated that Infini had experienced a large-scale theft incident. This event dealt a huge blow to the team but also served as a wake-up call. The response measures included a comprehensive audit, upgrading the custody plan, and crisis public relations.

From this incident, Infini has drawn valuable lessons: enhance security awareness, prioritize the choice of custodians, and focus on brand repositioning. Diana stated that this "tuition fee" was expensive, but it has paved the way for long-term stable development.

Global Compliance Strategy

Infini strictly complies with relevant policies and does not directly target users in mainland China, serving only users with overseas identities. In terms of Visa/MasterCard channels, Infini ensures compliance through global common compliance and regional risk control.

Diana emphasized that through KYC, KYT, and regional restrictions, Infini is ensuring global Compliance while also working to optimize the user experience.

The Impact of Regulation on PayFi

Diana believes that regulation is a double-edged sword. Strict regulation can increase compliance costs, but clear regulation can also provide a legal environment that attracts legitimate funds. Infini's response strategy is to "tailor to fit": initially choosing lightly regulated regions, gradually advancing compliance, and maintaining communication with regulators.

Balancing Compliance Costs and Business Growth

As a startup, Infini adopts a phased compliance strategy to balance compliance costs with business growth. Diana stated that the company initially chooses a low-cost lightweight license, and as the business volume increases, they will apply for a higher-level license.

Diana emphasized that compliance, although a cost, is essential for emerging businesses like PayFi. She often tells the team: "Compliance is a moat, it cannot be saved on!"

Regions Suitable for Web3 Entrepreneurship

Diana recommended several regions suitable for Web3 startups, including Dubai/UAE, European VASP regions, and Singapore. She reminded entrepreneurs to consider the regulatory attitude when choosing a landing area, as a friendly environment can lead to greater efficiency.

In addition, Diana also reminded entrepreneurs to pay attention to some easily overlooked details, such as handling proactive communication with compliance carefully and building a local network.

Advice for Web3 Lawyers

Diana provided three suggestions: maintain professionalism, gain an in-depth understanding of the business, and be a partner to the business team rather than a cop. She emphasized that Web3 lawyers should actively research the industry instead of passively waiting for clients to explain.

Finally, Diana shared her personal insight: don't be constrained by rules, follow the desires of your heart. She encouraged young people to be brave in trying, believing that as long as you sincerely want to do it, the world will pave the way for you.