Exchange Series: OKX - A Global Journey on a Red Background
Author: Bai Ding
OKX, the world's second-largest cryptocurrency exchange with a deep red background rooted in China, opens a new window for retail investors towards the crypto future with its delicate balance of government relations, innovative Web3 wallet, and decentralized exchange platform (DEX). From grassroots entrepreneurship in Beijing to a glamorous global transformation, the founding story of OKX is not only a business legend but also reflects the complex interplay between China's crypto industry and regulation. This article will delve into the red background of OKX's relationship with the government, its unique features, especially the charm of its Web3 wallet and DEX, and explore its advantages and potential risks for retail investors, helping you navigate the crypto market.
The story of OKX began in Beijing in 2013, a time when Bitcoin was just starting to create a global frenzy. Founder Star Xu, an entrepreneur passionate about China's internet and blockchain technology, keenly captured the potential of cryptocurrency. In a modest office, Star Xu founded Okcoin, a platform providing safe and efficient Bitcoin trading for Chinese users.
At that time, China was the center of global Bitcoin trading, and Okcoin quickly rose to become a popular choice for retail investors chasing wealth. The red background of OKX is first reflected in its deep binding with the Chinese market, having maintained close communication with government departments in its early days to ensure compliant operations. According to industry rumors, Star Xu actively engaged in dialogue with official regulatory bodies during the early stages of the startup, laying the foundation for OKX's success in the Chinese market. However, this delicate relationship with the government also posed unique challenges for OKX when regulatory winds shifted.
In 2017, the Chinese crypto industry faced a turning point. As regulatory policies tightened, OKX decisively spun off OKEx, registered in Hong Kong, shifting its business focus to the global market. This decision not only showcased OKX's keen insight into the policy environment but also reflected the complexity of its relationship with the government. Although publicly, OKX has always emphasized compliance and independence, its early communication experience with Chinese regulatory bodies has made it more flexible in responding to global regulations.
After exiting the mainland Chinese market, OKX did not completely sever its ties with Chinese users. Its website and app retained simplified Chinese support, and the customer service team was familiar with the habits of Chinese users. C2C trading supports local payment methods like Alipay and WeChat, and this "red bloodline" keeps OKX as the top choice for Chinese retail investors on its globalization journey.
In 2018, OKX moved its headquarters to Malta, accelerating global expansion by leveraging the local friendly crypto regulations. In 2022, OKEx was renamed OKX, dropping the "Ex" (exchange) designation to convey its intention to transition from a traditional exchange to a Web3 ecosystem. By 2025, OKX covers over 200 countries and regions, with more than 50 million users, and its daily trading volume consistently ranks second globally, only behind Binance. It has obtained multiple regulatory licenses in Dubai, the United States, the European Union, and other regions, demonstrating its compliance capabilities in cooperation with global governments.
In Hong Kong, OKX actively applies for virtual asset licenses and maintains close interaction with local regulatory bodies, continuing its pragmatic style under the "red background." This delicate balance with the government allows OKX to maintain its industry-leading position even under regulatory pressure.
The red background of OKX is not only reflected in its interactions with the government but also in its profound insight into the needs of Chinese retail investors. In the strictly regulated environment of mainland China, OKX has significantly lowered the entry barriers for retail investors through features like C2C trading and fee-free internal transfers. Its 24/7 Chinese customer service and friendly localized experience allow Chinese retail investors, even when overseas, to feel the warmth of "home." This service philosophy rooted in Chinese culture makes OKX one of the most trusted platforms for Chinese retail investors while globalizing.
As a comprehensive exchange, OKX's product matrix is impressive, with spot trading, futures, perpetual contracts, options, and other features catering to the needs of both novices and professional traders. Its millisecond-level order matching effectively reduces slippage, providing an ultimate experience for high-frequency traders. OKX has also launched a series of automated trading tools, such as Spot Martingale, Coin Stash, and Bottom Fishing, helping retail investors lock in profits during volatile markets. The one-click copy trading feature launched in 2025 allows novices to easily follow the strategies of professional traders for profit.
The true highlight of OKX lies in its early deep layout in the blockchain among all exchanges, especially the OKX Web3 wallet and OKX DEX. The OKX Web3 wallet is hailed as the "super entrance to the Web3 world," supporting over 79 public chains and covering token trading across more than 300 public chains. For retail investors, accessing different public chains requires different dedicated wallets, and this complexity is one of the biggest barriers to participating in on-chain trading. With the emergence of the OKX wallet, users can access most public chains with just one wallet, seamlessly participating in DeFi, NFT, GameFi, and other emerging fields without switching between multiple wallets.
In 2023, OKX launched the AA smart contract wallet, allowing users to pay Gas fees with USDT or USDC. The requirement to use different tokens as Gas for different public chains is overly complex, which is another major pain point for users entering on-chain trading. The OKX wallet undoubtedly significantly lowers the entry barrier for novices into Web3 once again. The wallet also integrates an NFT marketplace and DApp browser, supporting one-click cross-chain transfers with speeds comparable to centralized exchanges. For Chinese retail investors, there is a unique advantage: the OKX wallet does not require a VPN, making OKX not just a tool but a "passport" for exploring the decentralized world.
Equally noteworthy is OKX DEX, a decentralized trading platform that aggregates liquidity from multiple DEXs such as Uniswap, Curve, and PancakeSwap. OKX DEX supports cross-chain trading, covering mainstream public chains like Ethereum, BNB Chain, and Polygon, with fast trading speeds and low slippage, making it a benchmark for decentralized trading. Users can perform "foolproof trading" directly using the OKX wallet, making operations very simple.
For retail investors seeking asset autonomy, OKX DEX offers a trading experience without custody and with self-held private keys. Its uniqueness lies in the seamless connection with the OKX centralized exchange, allowing users to switch between CEX and DEX with one click, balancing convenience and security. In 2024, OKX DEX added a limit order feature, allowing retail investors to set target prices for automatic trading, further enhancing flexibility. For Chinese retail investors, OKX DEX is not only a high-yield entry into DeFi but also an ideal choice for avoiding centralized risks. OKX's advantages in this regard have long been industry-leading, until recently when Binance began to promote Alpha wallets, creating some competition with OKX.
OKX's Web3 layout is particularly appealing to Chinese retail investors. Through the OKX Web3 wallet and DEX, retail investors can easily participate in high-potential areas such as DeFi mining, NFT trading, and cross-chain bridges, seizing market opportunities. Especially in a bull market, OKX's contract trading and automated strategies can help retail investors amplify their profits. When Bitcoin surpassed $100,000 in 2024, the trading volume of OKX's perpetual contracts surged, and many retail investors achieved multiple returns through leveraged operations. OKX has also built an active trader community through AMA interviews, trading competitions, and other activities, providing a platform for retail investors to learn and communicate.
However, OKX also has shortcomings that retail investors need to be aware of. The compliance pressure brought by the red background requires Chinese retail investors to pay extra attention to policy risks. Although the functions of the OKX Web3 wallet and DEX are powerful, they still present a steep learning curve for novices, who may need time to familiarize themselves with cross-chain trading and Gas fee calculations. Additionally, OKX DEX does not currently support direct fiat currency exchanges, requiring retail investors to complete fiat conversions through C2C or other platforms, which can be somewhat cumbersome. OKX has service restrictions in certain countries (such as the United States), and retail investors need to ensure that their location meets the platform's requirements.
For Chinese retail investors, OKX holds significant meaning. Its red background allows it to deeply understand the needs of Chinese users, whether it's convenient deposit methods or Chinese language support, making retail investors feel at home. The innovations of the OKX Web3 wallet and DEX provide retail investors with opportunities to participate in high-yield on-chain activities.
As those who read my articles know, assets have a three-layer structure of the real world - exchange - on-chain world, and high-yield investments often lie not in the second layer exchange but in the third layer on-chain world. OKX is not just an exchange; it is the "core hub" for retail investors to explore DeFi, NFTs, and various on-chain activities. From grassroots entrepreneurship in Beijing to the second-largest exchange, OKX has written a crypto legend with its red background and global vision.
