The chief executive of crypto platform OKX says that the firm built a perpetual futures decentralized exchange (DEX), but didn’t launch it due to fears over regulatory penalties.
In a new thread, OKX CEO Star Xu says on X that the Commodity Futures Trading Commission (CFTC) enforcement action in 2023 against decentralized finance (DeFi) company Deridex kept it from launching its own perpetual futures DEX, which the firm had been developing.
In 2023, 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.
“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. While we celebrate the growth of on-chain perps, we should not forget the CFTC enforcement against Deridex in 2023.”
Decentralized perpetuals trading platform Hyperliquid launched in 2024 and Aster launched this year.
Xu also says that the US regulatory landscape has since become more supportive of the crypto space, a shift that occurred under President Trump, and seems to call for clarifying regulations around on-chain perpetual futures.
“Regulatory enforcement has fundamentally shifted – hopefully the industry can soon gain much-needed clarity.”
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