Crypto exchange OKX has revealed it developed a decentralized perpetuals trading platform similar to Hyperliquid and Aster but decided against launching it, citing regulatory uncertainty.
OKX Built a Perps DEX But Hit Pause
In an X post on Sunday, OKX founder and CEO Star Xu said that the exchange’s Web3 arm developed a decentralized perpetuals platform in 2023 but chose not to deploy it on mainnet.
“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,” Xu wrote.
“OKX Web3 has been testing a similar product since 2023, but we chose not to launch mainnet due to regulatory concerns.”
While Xu did not confirm whether the decision was linked to the Commodity Futures Trading Commission’s (CFTC) enforcement action against Deridex in September 2023, he pointed to the case as a turning point for the industry.
Perpetuals DEX Market Is Booming
Decentralized perpetuals exchanges — or on-chain perps platforms — have seen explosive growth in 2024.
Hyperliquid has become one of the leading decentralized finance (DeFi) perpetuals venues, hitting a record $319 billion in trading volume in July.
Aster, launched as Aster Chain in July and backed by CZ-affiliated YZi Labs, is positioning itself as a direct competitor to Hyperliquid, recording over $22 billion in trading volume in the past 30 days, according to DefiLlama.
Regulatory Pressure Stalls Innovation
The 2023 CFTC action against Deridex accused the protocol of illegally offering digital asset derivatives trading and failing to register as a swap execution facility or futures commission merchant. The regulator also targeted its perpetual swaps.
Two other protocols — Opyn and ZeroEx — were cited for offering leveraged and margined retail commodity transactions in digital assets without proper registration.
Xu warned that regulatory crackdowns have reshaped the environment for decentralized finance:
“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.”
Signs of Regulatory Shift in the U.S.
Since the election of crypto-friendly President Donald Trump in January, the regulatory climate for digital assets appears to be shifting.
The CFTC recently appointed new members to its Global Markets Advisory Committee, including several crypto industry leaders on its Digital Asset Markets Subcommittee.
Additionally, the White House’s July report on cryptocurrency policy recommended that oversight of digital assets be shared between the CFTC and the Securities and Exchange Commission (SEC), giving the CFTC control over spot crypto markets — a move many see as favorable for the industry.
