Text: Bai Ding
OKX, the global second-largest crypto exchange with a deep Chinese red background, has opened a new window to the crypto future for retail investors through its delicate balance with government relations, innovative Web3 wallet, and decentralized exchange (DEX). From a grassroots startup in Beijing to a glamorous global transformation, OKX's success story is both a commercial legend and a reflection of the complex landscape of the Chinese crypto industry's dance with regulators. This article will delve into OKX's red background in government relations, its unique features, especially the charm of its Web3 wallet and DEX, and explore its advantages and potential risks for retail investors to help you navigate the crypto market.
OKX's story began in Beijing in 2013, an era when Bitcoin was creating a global sensation. Founder Star Xu, an entrepreneur passionate about Chinese internet and blockchain technology, keenly captured the potential of cryptocurrencies. In a modest office, Star Xu established Okcoin, a platform providing secure and efficient Bitcoin trading for Chinese users.
At that time, China was the global center of Bitcoin trading, and Okcoin quickly rose, becoming a popular choice for retail investors chasing wealth. OKX's red background was first reflected in its deep connection with the Chinese market, maintaining close communication with government departments in the early stages to ensure compliant operations. According to industry rumors, Star Xu actively dialogued with official regulatory agencies in the early days of his startup, laying the foundation for OKX's success in the Chinese market. However, this delicate relationship with the government also presented unique challenges when regulatory winds shifted.
In 2017, the Chinese crypto industry reached a turning point. As regulatory policies tightened, OKX decisively spun off OKEx, registered in Hong Kong, and shifted its business focus to the global market. This decision not only demonstrated OKX's keen insight into policy environments but also reflected the complexity of its government relations. Although public information always emphasizes compliance and independence, OKX's early communication experience with Chinese regulators provided greater flexibility in addressing global regulations.
After exiting the mainland Chinese market, OKX did not completely sever its ties with Chinese users. Its website and app maintained Simplified Chinese support, with customer service teams familiar with Chinese user habits, and C2C transactions supporting local payment methods like Alipay and WeChat. This "red bloodline" made OKX the first choice for Chinese retail investors on its global journey.
In 2018, OKX moved its headquarters to Malta, leveraging local crypto-friendly regulations to accelerate global expansion. In 2022, OKEx was renamed OKX, removing the "Ex" (exchange) to convey its intent to transform from a traditional exchange to a Web3 ecosystem. By 2025, OKX covers over 200 countries and regions, with more than 50 million users and daily trading volumes consistently ranking second globally, only behind Binance. It has obtained multiple regulatory licenses in Dubai, the US, and the EU, demonstrating its compliance capabilities in cooperating with global governments.
In Hong Kong, OKX actively applied for virtual asset licenses, maintaining close interaction with local regulators, continuing its pragmatic approach under its "red background". This delicate balance with the government has allowed OKX to maintain its industry-leading position under regulatory pressure.
OKX's red background is not only reflected in its government interactions but also in its profound insight into Chinese retail investors' needs. In the strictly regulated mainland China environment, OKX significantly lowered retail investors' entry barriers through C2C trading and free internal transfers. Its 24/7 Chinese customer service and intimate localized experience allowed Chinese retail investors to feel "at home" even overseas. This service philosophy rooted in Chinese culture made OKX one of the most trusted platforms for Chinese retail investors during its globalization.
As a comprehensive exchange, OKX's product matrix is impressive, with spot trading, futures, perpetual contracts, and options functions meeting the needs of users from beginners to professional traders. Its millisecond-level order matching effectively reduces slippage, providing an ultimate experience for high-frequency traders. OKX also launched a series of automated trading tools like spot Martingale, coin storage treasure, and buy-the-dips treasure, helping retail investors lock in profits during volatile markets. The one-click copy trading function launched in 2025 allows newcomers to easily profit by following professional traders' strategies.
OKX's true highlight is its early on-chain depth layout, especially its OKX Web3 wallet and OKX DEX. The OKX Web3 wallet is hailed as the "super entrance to the Web3 world", supporting 79+ public chains and token trading across 300+ public chains. For retail investors, using different public chains requires different dedicated wallets, and this complexity is one of the biggest obstacles to participating in on-chain transactions. With the OKX wallet, users can access most public chains with just one wallet, seamlessly participating in emerging fields like DeFi, Non-Fungible Token, and GameFi without switching between multiple wallets.
In 2023, OKX launched an AA smart contract wallet, allowing users to pay gas fees with USDT or USDC. The requirement to use different tokens as gas on different chains is overly complex, another major pain point for users entering on-chain transactions. The OKX wallet undoubtedly further lowered the entry barrier to Web3 for newcomers. The wallet also integrated an NFT marketplace and DApp browser, supporting one-click cross-chain transfers with speeds comparable to centralized exchanges. For Chinese retail investors, there's a unique advantage: the OKX wallet doesn't require a proxy, making OKX not just a tool but a "pass" to explore the decentralized world.
Equally noteworthy is the OKX DEX, a decentralized trading platform aggregating liquidity from multiple DEXs like Uniswap, Curve, and PancakeSwap. The OKX DEX supports cross-chain trading, covering mainstream public chains like Ethereum, BNB Chain, and Polygon, with fast trading speeds and low slippage, setting a benchmark for decentralized trading. It can be directly used with the OKX wallet for "fool-proof trading", with extremely simple operations.
For retail investors pursuing asset sovereignty, OKX DEX provides a trading experience without custody, with users retaining their private keys. Its unique feature is 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 limit order functionality, allowing retail investors to set target prices for automatic trading, further enhancing flexibility. For Chinese retail investors, OKX DEX is not only an entrance to high-yield DeFi but also an ideal choice to avoid centralized risks. OKX's advantage in this aspect has been almost unrivaled until recently when Binance started aggressively developing its Alpha wallet.
OKX's Web3 layout is particularly attractive to Chinese retail investors. Through the OKX Web3 wallet and DEX, retail investors can easily participate in high-potential areas like DeFi mining, Non-Fungible Token trading, and cross-chain bridges to seize market opportunities. Especially during bull market conditions, OKX's perpetual contract trading and automated strategies can help retail investors amplify returns. When Bitcoin broke $100,000 in 2024, OKX's perpetual contract trading volume surged, with many retail investors achieving multiple returns through leverage operations. OKX also created an active trader community through AMA interviews and trading competitions, providing a platform for learning and communication for retail investors.
However, OKX also has shortcomings that retail investors should be aware of. The compliance pressure from its red background means Chinese retail investors need to be particularly cautious about policy risks. While powerful, the OKX Web3 wallet and DEX features still have a steep learning curve for newcomers, potentially requiring time to familiarize with cross-chain trading and gas fee calculations. Additionally, OKX DEX currently does not support direct fiat currency conversion, requiring retail investors to complete fiat conversion through C2C or other platforms, making the process somewhat cumbersome. OKX also has service restrictions in some countries (like the US), so retail investors must ensure their region meets platform requirements.
For Chinese retail investors, OKX's significance is extraordinary. Its red background allows it to profoundly understand Chinese users' needs, from convenient deposit methods to Chinese support, making retail investors feel intimate. OKX's Web3 wallet and DEX innovations provide retail investors with opportunities to participate in high-yield on-chain activities.
Regular readers of my articles know that assets have a three-layer structure: real-world, crypto exchange, and on-chain world. High-yield investments are often not found in the second layer (crypto exchange), but in the third layer (on-chain world). OKX is not just a crypto exchange, but also a "core hub" for retail investors to explore DeFi, Non-Fungible Token, and various on-chain strategies. From a grassroots startup in Beijing to the second-largest crypto exchange, OKX has written a crypto legend with its red background and global vision.
