Hyperliquid draws UK FCA warning as ICE studies $255M perps model

The UK's top financial regulator flagged Hyperliquid as unauthorized, even as the NYSE's parent company studies the crypto exchange's model.

The UK Financial Conduct Authority on May 21 added Hyperliquid to its warning list, flagging the decentralized perpetual futures venue as an unauthorized firm potentially targeting British consumers.

"Hyperliquid may be providing or promoting financial services or products without our authorization," the FCA said in its notice, warning users to "avoid dealing" with the platform and its associated websites, hyperfoundation.org and app.hyperliquid.xyz.

The warning arrived as Hyperliquid had generated $255 million in year-to-date revenue by May 20, with its HYPE token gaining 101% over the same period before trading at about $62 on Thursday, down 7% in 24 hours as a broader crypto market selloff deepened. The FCA notice drew renewed attention this week after surfacing more prominently in search results, with Multicoin Capital co-founder Kyle Samani responding to the news with two words: "The first of many." His post received over 400 likes and more than a million views. Binance received a similar FCA warning in 2021 and continued operating, suggesting the notice may not force Hyperliquid to exit the UK market.

The regulatory action highlights a widening divergence in how major jurisdictions treat crypto perpetual futures, with the UK flagging an offshore venue while the US has begun approving regulated versions of the product through the CFTC.

Regulators Split on Perps as CME Warns, ICE Explores

CME Group Chief Executive Terry Duffy on June 4 criticized the CFTC's decision to allow regulated crypto perpetual futures in the US, calling the highly leveraged products a "disaster waiting to happen" that could expose retail investors to significant losses. Duffy argued that perpetual futures allow traders to maintain positions indefinitely while using leverage that may reach 50 times the deposited capital, with automatic liquidation mechanisms and funding-rate costs that many market participants may underestimate. Intercontinental Exchange Chief Executive Jeffrey Sprecher took a contrasting view the same week, saying the NYSE parent was studying Hyperliquid's model and asking regulators why traditional venues could not offer comparable products.

US Market Opens as Offshore Venues Face Scrutiny

The CFTC on May 29 approved prediction market platform Kalshi to offer Bitcoin perpetual futures, with the firm launching Ethereum perps on June 4. Another 11 cryptocurrency perpetual futures contracts, including products tied to Solana and Dogecoin, remain under review, according to regulatory filings. Coinbase Financial Markets received regulatory guidance allowing eligible institutional clients in the US to access perpetual futures and options listed on Deribit, the derivatives exchange Coinbase acquired in 2025. Kraken has also announced plans to offer regulated Bitcoin perpetual futures through Bitnomial Exchange, the regulated platform acquired by parent company Payward earlier this year.

"Perpetual futures have grown into one of the dominant mechanisms for expressing directional views on digital assets," Matthew Pinnock, COO of Altura DeFi, said. Volumes processed on venues such as Hyperliquid have made it "impossible" for traditional market participants to treat them "as peripheral," he added.

The FCA warning does not carry the force of an enforcement action but puts Hyperliquid on notice that UK regulators are monitoring offshore platforms serving British users. For Hyperliquid, which has grown into one of the largest decentralized perps venues without formal registration in any major jurisdiction, the notice adds to a growing list of regulatory headwinds that could shape how the platform approaches compliance.

This article is for informational purposes only and does not constitute investment advice.