$5.57B
created a decentralized trading product focused on perpetual contracts but decided not to release it publicly because of concerns about potential legal challenges.
In a post shared on X, Star Xu, the founder and CEO of OKX, revealed that the company’s Web3 division developed the platform during 2023.
The design was similar to that of existing decentralized perpetual exchanges, such as Hyperliquid and Aster. However, the project has not gone live on any blockchain network.
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One reason for the caution was a 2023 enforcement action by the US Commodity Futures Trading Commission (CFTC). The CFTC accused Deridex, a decentralized protocol, of offering crypto derivatives without registering properly.
The agency stated that Deridex failed to comply with the rules governing trading platforms that deal in swaps or futures.
Xu referred to the Deridex case as a clear signal that regulators are paying more attention to how decentralized trading tools are built and used. He expressed hope that the industry will eventually get clearer guidelines.
Although OKX has completed building its own decentralized platform, the company has not shared specific details about its progress. For now, the project remains inactive. Xu noted:
We should remember the CFTC action against Deridex in 2023. The way regulations are enforced has changed. Hopefully, we’ll get clarity soon.
On September 16, Crypto Finance, part of the Deutsche Börse Group, introduced Crypto Finance AnchorNote. What is it? Read the full story.
