OKX, one of the world’s largest cryptocurrency exchanges, reportedly built and tested a decentralized perpetuals trading platform as far back as 2023 but chose not to launch it due to regulatory concerns. In a post on X, Star Xu, founder and CEO of OKX, said the company’s Web3 arm had developed a product similar to Hyperliquid, the fast-growing decentralized exchange known for its perpetual futures markets. “Hyperliquid proved that massive success in on-chain perps can be achieved with very few employees. Now, more competitors like $Aster are stepping into the space. OKX Web3 has been testing a similar product since 2023, but we chose not to launch mainnet due to regulatory concerns,” Xu wrote . He added, “While we celebrate the growth of on-chain 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.” On-chain perps became apparent with Hyperliquid’s success Traditionally the preserve of centralized platforms such as Binance or OKX’s own exchange, perps are now finding traction on decentralized protocols where users retain custody of their funds. Hyperliquid has been among the most prominent beneficiaries of this shift. It is now planning to launch a native stablecoin , USDH, to further anchor its ecosystem. Xu’s comments suggest OKX was technically ready to enter this field two years ago but pulled back to avoid regulatory pitfalls. U.S. regulators ruled with a heavy enforcement hand The main obstacle appeared to have been enforcement actions by the U.S. Commodity Futures Trading Commission (CFTC) at the time. In September 2023, the CFTC charged three DeFi projects, Opyn, Deridex and ZeroEx, with illegally offering digital asset derivatives trading. The cases centered on their failure to register as swap execution facilities or futures commission merchants, and for not implementing anti-money laundering procedures. Deridex in particular was accused of offering perpetual swaps without excluding U.S. users. The precedent appears to have weighed heavily on OKX’s decision not to launch its own protocol. The company itself has faced regulatory heat. In February 2025, it pleaded guilty to violating U.S. anti-money laundering laws and agreed to pay more than $504 million in penalties. President Trump has pushed to protect American innovation A lot has happened in the crypto space between 2023 and 2025, as the industry has seen more friendly regulations come up, culminating in the GENIUS Act which was signed into law this year. The Trump administration has operated with a green light on crypto and blockchain innovation and activities while pushing for more favorable regulation. This is a huge contrast to the regulators’ position from 2023. Currently, the Digital Asset Market Clarity Act of 2025, still under congressional consideration, proposes a split in oversight between the Securities and Exchange Commission and the CFTC. Analysts say such frameworks could pave the way for established players like OKX to launch decentralized derivatives products legally. The SEC and CFTC are reportedly working to harmonize and make DeFi, perp contracts, and 24/7 markets, among others, work seamlessly. A roundtable on the matter is expected to be held by the end of the month. Still, Xu’s revelation signals that major exchanges are watching closely and may already have technology ready to deploy once legal conditions shift, as they have in this case. If you're reading this, you’re already ahead. Stay there with our newsletter .
