OKX Shelved Perps DEX Amid Regulatory Concerns
OKX Pauses Perps DEX Launch
Crypto exchange OKX developed a decentralized perpetuals trading platform, similar to Hyperliquid and Aster, but decided against launching it due to regulatory concerns, according to founder Star Xu.
The Web3 arm of OKX created the platform in 2023. Xu stated in an X post on Sunday, "OKX Web3 has been testing a similar product since 2023, but we chose not to launch mainnet due to regulatory concerns."
He acknowledged the success of platforms like Hyperliquid and Aster in the on-chain perps space.
DeFi Perps Exchanges Gaining Traction
Decentralized perpetuals exchanges have seen significant growth recently:
- Hyperliquid: Launched in 2024 and recorded approximately $319 billion in trading volume in July.
- ASTER: A derivatives exchange backed by YZi Labs, has logged over $22 billion in trading volume in the last 30 days, according to DefiLlama.
Regulatory Uncertainty Cited
Xu cited the Commodity Futures Trading Commission (CFTC) enforcement action against Deridex in September 2023 as a key factor in the decision to halt the launch. The CFTC alleged that Deridex was illegally offering digital asset derivatives trading and failed to register as a swap execution facility or a futures commission merchant, focusing on its perpetual swaps.
The CFTC has also taken action against protocols like Opyn and ZeroEx for offering leveraged and margined retail commodity transactions in 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 stated.
Evolving Regulatory Landscape
Since January, the regulatory landscape in the United States has seen shifts. The CFTC recently appointed new members to its Global Markets Advisory Committee and subcommittees, including crypto industry leaders in the Digital Asset Markets Subcommittee.
A White House report from July suggested shared oversight of digital assets between the CFTC and the Securities and Exchange Commission, potentially granting the CFTC oversight over spot crypto markets.