Injective Mainnet Nears as Centralized Crypto Derivatives Face Regulation

INJ is gearing up for decentralized leveraged trading just as regulation cracks down.

INJ Mainnet

Injective Protocol, the layer 2 DEX which “unlocks the full potential of decentralized derivatives and borderless DeFi” is gearing up for its mainnet launch.

This comes just as regulators around the world focus greater attention on centralized derivatives trading. Following the release of Injective’s Solstice testnet, which allowed traders to use the protocol for the first time, daily trading volume on the platform has frequently exceeded $500 million a day. During the test period the protocol has been developed and expanded upon with additional markets such as synthetic gold, Tesla stock futures, GameStop stock futures, Forex futures, and yield farming derivatives.

Regulation Bit ByBit

The launch of the Injective mainnet comes as national regulators begin to take a greater interest in derivatives trading. Bybit is one of the companies which has drawn increased interest of late, with Japan’s Financial Services Agency (FSA) among the regulators to clamp down on the exchange. The FSA has warned Bybit that it is allowing traders from the region to use Bybit’s services, without the Singapore-based company completing registration with Japanese regulators. This warning shot from the FSA is similar to one it previously issued Binance in 2018.

Japan is not the first country to turn its focus on the exchange. In March the company ceased all operations in the UK following the Financial Conduct Authority’s (FCA) ban of crypto derivatives trading. In a blog on the Bybit website the company informed UK customers that they would need to withdraw all funds and end all trading positions by the end of the month.

The company went on to add, “We regret this situation, and will seek dialogue with regulators to explore options. We hope to be able to earn the privilege to serve you again in the future.”

What UK visitors see when visiting the Bybit site

Optimism for Injective

While the clamp down on centralized exchanges is giving Bybit more than a few headaches, it presents an even greater opportunity for Injective Protocol. With centralized exchanges severely hamstrung, Injective has the potential to claim more of the market for itself.

Injective Protocol, which has been dubbed the “Robinhood of DeFi” is now in an excellent position to capitalize following a successful “party” funding round which raised $10 million dollars. Some of the names which invested in the protocol include Pantera Capital, BlockTower, Hashed, Cadenza Ventures (backed by 100x Group), CMS and QCP Capital.

Another company which is heavily backing Injective Protocol is Binance. Binance has been involved with Injective since 2018, incubating the project in Binance Labs. Injective later launched on Binance Launchpad further solidifying the strong relationship between the centralized and decentralized exchanges.


As regulators around the world focus greater attention on centralized exchanges and especially derivatives trading, the launch of Injective Protocol’s mainnet is fortuitous for traders and the exchange alike. While governing bodies may be able to regulate centralized exchanges, their decentralized competitors are increasingly ready to take up the slack.

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