Hyperliquid faces scrutiny as Wall Street circles
Decentralised derivatives platform Hyperliquid is facing increasing regulatory scrutiny after Britain's Financial Conduct Authority warned that the exchange and the Hyper Foundation may be providing or promoting financial services in the UK without authorisation.
The FCA placed Hyperliquid on its warning list and advised consumers to avoid dealing with the platform, noting that users would not have access to the Financial Ombudsman Service or Financial Services Compensation Scheme if they suffered losses.
“You should avoid dealing with this firm and beware of scams,”
The FCA said in its notice, which listed Hyperliquid's website, trading application and social media channels under unauthorised firm details.
The warning arrives as Hyperliquid expands beyond crypto-native trading into synthetic markets linked to stocks, commodities and private companies, with the platform reporting that real-world asset open interest reached a record $3 billion and has set new monthly highs since the launch of its HIP-3 markets in October 2025.
The exchange has also drawn criticism from major traditional market operators including CME Group and Intercontinental Exchange, which reportedly raised concerns with the Commodity Futures Trading Commission over potential risks tied to decentralised perpetual futures trading.
Those concerns centre on whether a platform with limited identity checks could enable market manipulation, sanctions evasion or excessive influence on globally important commodity benchmarks such as oil as trading volumes continue to grow.
Meanwhile, Hyperliquid's supporters argue that public blockchain records provide enhanced transparency and surveillance capabilities, while the platform's future may depend on whether it remains offshore, pursues a regulated structure or adopts a more decentralised governance model as regulators increasingly move towards formal oversight of perpetual futures markets.
At the time of reporting, Hyperliquid price was $61.11.