Overview
- The UK Financial Conduct Authority added Hyperliquid and Hyper Foundation to its warning list for operating without authorization and named the sites hyperfoundation.org and app.hyperliquid.xyz.
- The FCA notice dated May 21 tells British users they would not have access to the Financial Ombudsman or the Financial Services Compensation Scheme if they use the platform.
- Perpetual futures are leveraged, no‑expiry derivatives that run 24/7 and rely on margining, funding payments and automated liquidations, which regulators now question for resilience under sharp market stress.
- Industry leaders have reacted publicly, with CME CEO Terry Duffy calling perps risky and ICE/NYSE executives studying Hyperliquid’s model as U.S. regulators begin permitting some on‑chain perpetual products under supervision.
- Hyperliquid is a major decentralized perps venue that reported roughly $255 million in year‑to‑date revenue and whose HYPE token fell about 7% after the FCA notice drew renewed attention.