OKX founder Star Xu announced that the crypto exchange built a decentralized perpetuals trading platform similar to Hyperliquid and Aster in 2023 but delayed its launch due to regulatory concerns. Xu highlighted the success of onchain perps and the increasing competition in the space.

Decentralized perpetuals exchanges like Hyperliquid and ASTER are gaining momentum in the DeFi sector. Hyperliquid saw a record trading volume of $319 billion in July, while ASTER has logged over $22 billion in trading volume in the last month as a direct competitor to Hyperliquid.

Regulatory concerns surrounding the offering of digital asset derivatives trading, especially perpetual swaps, led OKX to delay the launch of its decentralized perpetuals trading platform. The CFTC’s enforcement action against Deridex in 2023 highlighted the importance of regulatory compliance in the crypto industry.

With the election of crypto-friendly US President Donald Trump, there has been a shift in the United States’ regulatory stance on cryptocurrencies. The CFTC appointed new members to its Global Markets Advisory Committee and subcommittees, including leaders from the crypto industry. The White House’s report on cryptocurrency policy recommended shared oversight between the CFTC and SEC.

Read more at Cointelegraph: OKX Built a Perps DEX But Paused Launch Citing CFTC Crackdown