OKX’s Decentralized Perpetual Trading Platform Delayed Over Regulatory Concerns
Crypto exchange OKX has developed a decentralized perpetual trading platform similar to Hyperliquid and Aster, but its launch has been postponed due to regulatory issues, according to the founder, Star Xu.
The unnamed platform, created by the Web3 division of OKX in 2023, was discussed by CEO Star Xu in a post on X this past Sunday. Xu remarked, “Hyperliquid proved that massive success in onchain perps can be achieved with very few employees. Now, more competitors like Aster are stepping into the space.”
He continued, “OKX Web3 has been testing a similar product since 2023, but we chose not to launch mainnet due to regulatory concerns.”
Competitors and Market Trends
Launched in 2024, decentralized perpetual exchange Hyperliquid has quickly established itself as a leading DeFi venue, achieving its highest trading volume in July, which reached around $319 billion. In addition, ASTER, which debuted as Aster Chain in July, is a crypto derivatives exchange supported by CZ-affiliated YZi Labs and positioned as a competitor to Hyperliquid. According to DefiLlama, ASTER has recorded over $22 billion in trading volume within the past month.
Xu did not elaborate on the current status of OKX’s platform but expressed concerns regarding the Commodity Futures Trading Commission (CFTC) enforcement action against Deridex in September 2023. This action accused Deridex of illegally offering digital asset derivatives trading without registering as a swap execution facility or a futures commission merchant, with a particular focus on perpetual swaps.
- Two other protocols, Opyn and ZeroEx, were also mentioned for violating regulations in connection with leveraged and margined retail commodity transactions involving digital assets.
“While we celebrate the growth of onchain perps, we should not forget the CFTC enforcement against Deridex in 2023. Regulatory enforcement has fundamentally shifted — hopefully the industry can soon gain much-needed clarity,” Xu commented.
Since the election of crypto-friendly US President Donald Trump in January, the regulatory environment in the United States has changed significantly. Recently, the CFTC appointed new members to its Global Markets Advisory Committee and its subcommittees, incorporating several leaders from the crypto industry into the Digital Asset Markets Subcommittee.
Moreover, a report released by the White House on cryptocurrency policy in July recommended that the oversight of digital assets be divided between the CFTC and the Securities and Exchange Commission, with the CFTC responsible for the regulation of spot crypto markets.
