The UK’s Financial Conduct Authority, the country’s top financial regulator, has added Hyperliquid, the dominant decentralized perpetual futures exchange, to its official warning list, flagging it as an unauthorized firm potentially targeting British consumers.
The warning was issued against its websites hyperfoundation.org and app.hyperliquid.xyz for operating without authorization.
Hyperliquid hasn’t registered or been authorized to offer financial services in Britain, according to the financial watchdog. Anyone who uses it won’t have access to the Financial Ombudsman for complaints, nor will they be covered by the Financial Services Compensation Scheme if things go wrong.
Kyle Samani, co-founder of Multicoin Capital, responded to the news with two words: “The first of many.” His post received over 400 likes and more than a million views.
Binance received similar treatment in 2021, and it didn’t disappear. It’s noteworthy that this is a standard consumer warning the FCA issues to any overseas platform operating in the UK without regulatory authorization. It does not mean the FCA has found fraud or financial mismanagement; it simply means Hyperliquid has not registered with the regulator or geoblocked British users.
HYPE, Hyperliquid’s native asset, did not immediately show a reaction after the warning surfaced. It traded at around $62 at press time, down 7% in the last 24 hours amid ongoing crypto market struggles.