Hyperliquid's HYPE drops 2% after Singapore MAS adds platform to alert list

Singapore's financial regulator flagged Hyperliquid as an unlicensed platform, but the warning does not block access or constitute a finding of wrongdoing.

The Monetary Authority of Singapore added Hyperliquid to its Investor Alert List on June 26, placing the $14 billion decentralized perpetual futures exchange alongside Binance and Bybit on the regulator's public warning register. HYPE, the platform's native token, fell 2% to near $62 on the news, according to CoinGecko data as of 14:30 UTC.

"The IAL listing does not constitute a ban, an enforcement action, or a finding of wrongdoing," Hyperliquid said in a statement. The platform operates as permissionless infrastructure and has never claimed to hold a MAS license or be authorized by the regulator, it said.

The IAL is a consumer warning register maintained by MAS, not a blacklist. Inclusion means trades executed on a listed venue carry no MAS investor protections, but it does not block Singapore-based users from accessing the platform or its tokens. MAS gave the same explanation when it added Bybit on June 17 and KuCoin in February, both flagged for serving residents without authorization. Binance was listed in 2021 and ordered to stop serving Singapore, later withdrawing its local license bid.

Hyperliquid's roughly 11-person team relocated to Singapore in 2024, led by co-founder Jeff Yan, but never sought a license there. The warning now names a project run from the regulator's own city. The team said nothing about the network has changed — users maintain self-custody, and all transactions settle transparently on-chain.

The Bull Case Remains Intact

The regulatory flagging has not shaken Hyperliquid's most prominent backers. Bitwise chief executive Hunter Horsley said markets still underestimate the platform, citing its user base and fee revenue. Bitwise has sought to launch HYPE investment products to capture wider adoption.

Multicoin Capital, which holds a large HYPE position, pegged Hyperliquid's 2025 revenue near $873 million and put the platform's share of decentralized perpetual open interest above 59%. In March, S&P Dow Jones Indices licensed the S&P 500 for its first official perpetual contract, now trading on Hyperliquid. Multicoin published a valuation projecting the token could reach about $319 by 2028 in its base case, while flagging risks around regulation, competition, and governance.

HYPE remains about 65% above its level a year ago, though it sits below the record high of $76.70 from June 16. The coming weeks will show whether MAS extends similar notices to other on-chain platforms. For now, one regulator's caution sits beside a loud bet that Hyperliquid is only getting bigger.

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