OKX developed a new trading platform but paused its launch amid rising regulatory pressure.
- OKX’s onchain perpetuals platform is ready but not launched.
- Hyperliquid and Aster are gaining major trading volume.
- Regulatory actions by the CFTC impact launch decisions.
OKX Built a New Platform in 2023
Crypto exchange OKX has developed a decentralized trading platform for perpetual contracts. Its Web3 unit created the product in 2023. However, according to CEO Star Xu, the company decided not to go live with the platform.
Xu said the reason for holding off the launch is rising regulatory concerns. He shared the update on X (formerly Twitter) over the weekend. The product is similar to others like Hyperliquid and Aster, which are already live and growing fast.
Competitors Are Growing Quickly
Hyperliquid launched in early 2024 and has quickly become one of the biggest platforms in decentralized finance (DeFi) for trading perpetual contracts. It reached a record trading volume of $319 billion in July.
Aster, another new platform, is backed by YZi Labs, a firm connected to Binance co-founder CZ. It went live in July and reached more than $22 billion in trading volume over the past 30 days, according to data from DefiLlama.
These platforms show strong demand for decentralized perpetuals. But OKX is staying cautious due to legal risks.
Past Legal Actions Create Caution
Xu referred to a major enforcement in 2023 by the U.S. Commodity Futures Trading Commission (CFTC). That case targeted a platform called Deridex for offering illegal derivatives trades and failing to register as required.
Two other protocols, Opyn and ZeroEx, were also affected. The action raised questions about how U.S. laws apply to digital asset trading, especially for contracts like perpetual swaps. Xu said, “Regulatory enforcement has fundamentally shifted.”
Regulation May Soon Become Clearer
Changes could be coming. Since the election of a crypto-supporting U.S. president in January, regulators are taking new steps. The CFTC recently added crypto leaders to its Digital Asset Markets Subcommittee.
A White House report in July suggested joint oversight between the CFTC and the Securities and Exchange Commission (SEC). Under the proposal, the CFTC would oversee spot markets for crypto.
While OKX waits for more clarity, the market for onchain perpetuals continues to grow around them.
Source: cointelegraph.com
