The UK's Financial Conduct Authority has listed Hyperliquid and the Hyper Foundation as unauthorized financial entities. The warning, dated May 21, states the platforms may be offering or promoting financial services in the UK without permission. The notice recently resurfaced, drawing fresh attention to Hyperliquid, one of the largest decentralized venues for crypto perpetual futures.
CME Group CEO Terry Duffy warned this week that crypto perps could become a 'disaster waiting to happen,' criticizing U.S. regulators for allowing similar products into regulated markets. The remarks follow the CFTC's approval of Bitcoin perpetual futures for prediction market platform Kalshi.
Hyperliquid has generated $255 million in year-to-date revenue, and its HYPE token surged 101% over the same period. Regulators are now closely watching whether liquidation systems, margin rules, and market surveillance can hold up during sharp market turns.