Overview
- The UK Financial Conduct Authority published a notice dated May 21 listing Hyperliquid and Hyper Foundation as potentially offering or promoting financial services in the UK without authorization and advising UK consumers to avoid the platform.
- Hyperliquid is one of the largest decentralized venues for perpetual futures, reporting about $255 million in year‑to‑date revenue and a roughly 101% rise in its HYPE token by May 20, figures that have made its markets central to crypto price discovery.
- CME Group CEO Terry Duffy warned that perpetual futures pose major risks to investors, while ICE CEO Jeffrey Sprecher said the exchange group is studying Hyperliquid’s model and asking why traditional venues cannot offer comparable products.
- U.S. regulators have opened a path for on‑shore perpetuals, with the CFTC approving regulated products and Kalshi launching bitcoin and ethereum perpetual futures in late May and early June, moves that shift some trading into supervised markets.
- The FCA notice does not allege fraud but means UK users lack Financial Ombudsman and FSCS protections, a gap that forces choices for Hyperliquid between staying offshore, creating a regulated U.S. wrapper, or changing its governance and product design.