OKX, one of the world’s largest cryptocurrency exchanges, reportedly built and tested a decentralized permanent trading platform dating back to 2023, but chose not to start it due to regulatory concerns.
In a post by OKX founder and CEO Star Xu, the company’s Web3 ARM said it has developed a product similar to Hyperliquid, a rapidly growing decentralized exchange known for its persistent futures market.
“High lipids have proven that employees can achieve great success in chains with very few employees. Now competitors like $Aster are stepping into the space. OKXWeb3 has been testing similar products since 2023, but chose not to launch MainNet due to regulatory concerns.” Xu wrote.
He said, “While we celebrate the growth of on-chain Purp, we must not forget the CFTC enforcement against Deridex in 2023. Regulatory enforcement has changed fundamentally.
On-chain Purp became clear with Hyperliquid’s success
Traditionally, Perps, a conservation of centralized platforms such as Binance and OKX’s own exchange, finds traction with decentralized protocols in which users retain custody of their funds.
High lipids are one of the most prominent beneficiaries of this shift. Currently, we are planning to launch a native Stablecoin, USDH, to further fix its ecosystem.
Xu’s comments suggest that OKX was technically ready to enter the field two years ago, but pulled back to avoid the pitfalls of regulation.
US regulators ruled with heavy enforcers
The main obstacle appears to have been enforcement measures by the US Commodity Futures Trading Commission (CFTC) at the time. September 2023, CFTC has been charged It illegally offers three Defi projects, Opyn, Deridex, Zeroex, and digital asset derivative transactions. This case focused on not being able to register as a swap execution facility or as a merchant for a futures committee and not implementing a money laundering anti-money laundering procedure.
Deridex in particular was accused of providing permanent swaps without excluding users.
The precedent appears to have been heavily on OKX’s decision not to launch its own protocol.
The company itself faces a heat of regulation. In February 2025, he pleaded guilty to violating the US money laundering laws and agreed to pay more than $504 million in penalties.
President Trump is pushing to protect American innovation
A lot has happened in the crypto space between 2023 and 2025. The industry has seen more friendly regulations, leading to the act of genius signed into law this year.
The Trump administration has been operating in a green light to innovate and act on crypto and blockchain, pushing for more advantageous regulations. This is a big contrast to the regulator’s position starting in 2023.
Currently, the 2025 digital asset market clarification act proposes a split in surveillance between the Securities and Exchange Commission and the CFTC, still under consideration by Congress.
Analysts say such frameworks can open up ways for established players like OKX to legally launch decentralized derivative products. The SEC and CFTC are reportedly committed to harmonizing Defi, PARC contracts and the 24/7 market, among other things. A roundtable discussion on the issue is expected to be held by the end of the month.
Still, Xu’s revelation shows that major exchanges are closely monitored, and as in this case, technology that unfolds could already be deployed as legal conditions change.
