The UK's Financial Conduct Authority (FCA) has warned consumers against the crypto derivatives platform Hyperliquid, stating it may be operating without authorization. The warning comes as Hyperliquid's 24/7 perpetual futures market sees rapid growth, attracting scrutiny from traditional exchanges CME Group and ICE, which have raised concerns about market manipulation with the U.S. CFTC.
FCA warning against Hyperliquid
- ▪The FCA stated Hyperliquid may be providing or promoting financial services in the UK without authorization
- ▪The FCA warned UK consumers to "avoid dealing" with Hyperliquid, noting they would not be covered by compensation or ombudsman services
- ▪Kyle Samani of Forward Industries described the FCA action as the "first of many," signaling expectations of more regulatory attention
- ▪The UK banned the sale of crypto derivatives to retail consumers in 2021 and expanded financial promotion rules to crypto in 2023
- ▪The UK's Financial Conduct Authority (FCA) placed Hyperliquid and the Hyper Foundation on its warning list on May 21
Hyperliquid perpetual futures growth
- ▪Hyperliquid's real-world asset open interest reached a record $3 billion, with its HIP-3 markets setting new records monthly since October 2025
- ▪Hyperliquid is a decentralized exchange for perpetual futures, which are leveraged derivatives contracts with no expiration date
- ▪By May 20, Hyperliquid had reportedly generated $255 million in year-to-date revenue
- ▪The platform allows synthetic, 24/7 trading exposure to assets including stocks, commodities, and private companies
CME concerns to CFTC
- ▪CME Group expressed concern that Hyperliquid's limited identity checks could enable market manipulation or sanctions evasion
- ▪CME Group CEO Terry Duffy warned that crypto perpetuals could become a "disaster waiting to happen."
ICE concerns to CFTC
- ▪Executives from Intercontinental Exchange (ICE) raised concerns with the U.S. Commodity Futures Trading Commission (CFTC) about Hyperliquid
- ▪ICE CEO Jeffrey Sprecher said the NYSE parent company is studying Hyperliquid's model
- ▪Both CME and ICE warned that activity on Hyperliquid could affect global oil benchmarks if used by sanctioned actors
CFTC perpetual futures framework
- ▪The CFTC also issued policy guidance on perpetual derivatives and 24-hour trading
- ▪The U.S. Commodity Futures Trading Commission (CFTC) approved a Bitcoin perpetual futures contract from Kalshi for listing on a registered venue
- ▪Hyperliquid remains outside the U.S. regulatory framework and blocks access to U.S. residents
- ▪The Hyperliquid Policy Center stated the CFTC's actions were a "long-overdue acknowledgment" that perpetuals can support price discovery
Hyperliquid regulatory compliance pathways
- ▪A regulated U.S. "wrapper" for Hyperliquid would likely require separate customer funds and a narrower list of products
- ▪Venture capitalist Derek Edwards outlined five potential paths for Hyperliquid, including remaining offshore or seeking a regulated US structure
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