Hyperliquid Hit by UK FCA Warning as Crypto Perps Face Scrutiny
Hyperliquid is back in focus as one of the largest crypto perpetual futures venues after the UK Financial Conduct Authority warned in May that Hyperliquid, Hyper Foundation, and related channels were operating or promoting financial services in the UK without authorization. The warning urged users to avoid the platform. Attention increased as major market figures debated crypto perps: CME’s CEO called them a potential “disaster,” while ICE’s CEO said his firm was studying Hyperliquid’s model. Meanwhile, the U.S. CFTC approved Kalshi to offer Bitcoin perpetual futures, showing a more permissive regulatory approach. Hyperliquid’s scale makes it hard to ignore: it reportedly generated $255 million in year-to-date revenue by May 20, and its HYPE token rose 101%. Perpetual futures are increasingly important for price discovery and leveraged trading, but regulators remain focused on whether liquidation, margin, and surveillance systems can withstand stress.
