OKX, a crypto exchange, has developed a decentralized perpetual trading platform similar to Hyperliquid and Aster but decided against launching it due to regulatory issues, according to its founder.
The Web3 division of OKX created the unnamed platform in 2023, as stated by OKX founder and CEO Star Xu in a post on X this past Sunday.
“Hyperliquid demonstrated that substantial success in on-chain perpetuals can be achieved with minimal staff. Now, more competitors like Aster are entering the market,” he noted.
“OKX Web3 has been testing a comparable product since 2023, but we opted not to proceed with the mainnet launch because of regulatory concerns.”
Decentralized perpetual exchanges are on the rise
Hyperliquid, a decentralized perpetuals exchange, launched in 2024 and has quickly become one of the leading venues in decentralized finance (DeFi), achieving its best month in July with approximately $319 billion in trading volume.
Meanwhile, ASTER, which debuted as Aster Chain in July, is a crypto derivatives exchange supported by CZ-affiliated YZi Labs and aims to compete directly with Hyperliquid. It has reported over $22 billion in trading volume in the past 30 days, according to DefiLlama.
Regulatory issues stalled initiatives
Xu did not elaborate on the product’s development status but mentioned the Commodity Futures Trading Commission’s enforcement action against Deridex in September 2023 as a key concern.
During the 2023 enforcement action, the CFTC alleged that Deridex was unlawfully offering digital asset derivatives trading and failed to register as a swap execution facility or a futures commission merchant, focusing particularly on its perpetual swaps.
Other protocols, Opyn and ZeroEx, were also cited in the enforcement action for illegally offering leveraged and margined retail commodity transactions involving digital assets.
“While we recognize the growth of on-chain perps, we should not overlook the CFTC enforcement against Deridex in 2023. Regulatory enforcement has dramatically changed — we hope the industry can soon find the clarity it desperately needs,” Xu remarked.
Related: Crypto Biz: Rails, rigs and regulation — the new crypto economy
Shifts in regulation underway
A notable change in the United States’ regulatory approach has occurred since the election of crypto-friendly US President Donald Trump in January.
Recently, the CFTC appointed new members to its Global Markets Advisory Committee and its subcommittees, including several leaders from the crypto industry in the Digital Asset Markets Subcommittee.
Simultaneously, the White House released a report in July recommending a shared oversight of digital assets between the CFTC and the Securities and Exchange Commission, with the CFTC overseeing spot crypto markets.
Magazine: SEC’s U-turn on crypto leaves key questions unanswered
