The UK's Financial Conduct Authority added Hyperliquid and the Hyper Foundation to its warning list this week. They operate without authorization in the UK, the regulator stated, urging consumers to avoid the platform. Users would lack access to the Financial Ombudsman Service or Financial Services Compensation Scheme if issues arise.
FCA's User Protection Alert
The regulator made one point crystal clear: anyone dealing with Hyperliquid has no safety net. UK users won't get recourse for complaints or losses. It's a blunt warning to step away from the platform. This isn't the first time the FCA has issued such alerts this year.
Exchange Giants' CFTC Concerns
CME Group and Intercontinental Exchange raised red flags with the CFTC. They said Hyperliquid's decentralized perpetual futures could enable price manipulation. Sanctions evasion risks and threats to global oil benchmarks were also cited. These are serious allegations from major market infrastructure players.
Hyperliquid's Growth Spurt
The platform reported $3 billion in real-world asset open interest last month. Its HIP-3 markets have set monthly open-interest records since launching in October 2025. That growth happened while the UK banned retail crypto derivatives back in 2021. Now it's under a brighter spotlight.
Regulatory Moves on Perpetuals
The CFTC approved Kalshi's Bitcoin perpetual futures contract this week. It also issued new policy guidance on perpetual derivatives and 24-hour trading. This follows the UK's 2023 expansion of financial promotion rules for crypto assets. Regulators are clearly focused on where the market's heading next. The FCA said it would review unauthorized firms quarterly starting next month.
