UK Regulator Flags Hyperliquid Amid Growing Crypto Futures Debate

The UK’s Financial Conduct Authority (FCA) issued a notice on May 21 naming the crypto platform Hyperliquid and its parent group as operating without proper permission. The regulator warned that the service might be offering financial products to UK users in violation of rules and urged people to stay away. Though initially overlooked, the message has recently resurfaced in online searches, drawing fresh attention.

In the United States, market leaders are weighing the risks of crypto perpetual contracts. CME Group’s chief executive cautioned that allowing these derivatives could lead to a “disaster waiting to happen.” He criticized the Commodity Futures Trading Commission’s approval process for products he called “novel and complex.” Meanwhile, the NYSE parent company is studying how Hyperliquid works and questioning why traditional exchanges cannot offer similar contracts.

A month earlier, the U.S. regulator approved a platform that can trade Bitcoin perpetual futures, showing that the country is open to regulated crypto derivatives. Yet, in the UK, the same activity is being flagged as unauthorized.

Hyperliquid is a major player in decentralized perpetual futures, where traders can bet on token prices with leverage and no expiry date. By late May, the platform had earned roughly $255 million in revenue for the year and its native token, HYPE, doubled in value. Experts say that these contracts have become a key way for traders to express opinions on digital assets, often before traditional markets do.

The growing importance of these instruments raises questions about how they fit into regulated systems. Key concerns include whether liquidation procedures, margin requirements, and market monitoring can keep pace if conditions shift suddenly. Regulators in different countries are taking divergent approaches, with the UK cautioning against offshore venues and the U.S. moving toward supervised approval.