Star Xu cites U.S. enforcement actions as industry awaits clearer rules
OKX, one of the world’s largest cryptocurrency exchanges, has revealed it developed a decentralized perpetuals trading platform in 2023 but decided not to launch it due to regulatory risks. The disclosure came from Star Xu, OKX founder and CEO, in a recent post on X.
Xu noted that OKX’s Web3 division had been experimenting with the platform since last year. “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 said.
Despite the internal progress, OKX refrained from launching on mainnet. Xu pointed to uncertainties around compliance, especially following the Commodity Futures Trading Commission’s (CFTC) enforcement against Deridex in September 2023, which alleged illegal derivatives trading without registration.
Regulatory Crackdowns Shape the Market
The CFTC’s 2023 enforcement didn’t stop at Deridex. Two other DeFi protocols, Opyn and ZeroEx, were also cited for offering leveraged and margined retail commodity transactions without proper authorization. These cases raised red flags for other platforms considering decentralized derivatives offerings.
Xu reflected on the situation, stating: “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.”
Onchain Perps Are Booming
While OKX has held back, decentralized perpetuals exchanges (perps DEXs) have surged in popularity. Hyperliquid, which launched in 2024, posted about $319 billion in trading volume in July, making it one of DeFi’s top venues. Meanwhile, Aster, backed by YZi Labs, has attracted $22 billion in trading volume over the past 30 days, according to DefiLlama.
The regulatory landscape in the United States is evolving. With President Donald Trump’s pro-crypto administration, agencies are under pressure to refine their oversight approach. Recently, the CFTC added crypto industry leaders to its Global Markets Advisory Committee, while a White House report recommended splitting oversight between the CFTC and the SEC, granting the CFTC authority over spot crypto markets.
For now, OKX’s DEX project remains shelved — a reminder that while innovation in onchain perps accelerates, regulatory clarity is still the missing piece.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.