Regulatory scrutiny of crypto perpetual contracts platforms in the UK is intensifying. On May 21, the UK Financial Conduct Authority (FCA) issued a notice listing Hyperliquid, Hyper Foundation, its protocol applications, and social media accounts as unauthorized entities, stating they may be offering or promoting financial services in the UK without authorization.
The UK names unauthorized entities
This notice initially did not spark widespread discussion, but it has begun appearing more frequently in search results this week, bringing the decentralized perpetuals platform back into the market's spotlight. As Hyperliquid is already one of the largest perpetuals trading venues in the crypto market, regulatory statements are more likely to attract attention.
The FCA did not announce additional penalties in its notice, but listing the entities on the unauthorized list itself sends a clear regulatory signal. For platforms serving UK users, such language typically indicates increased promotional and compliance risks.
The regulatory paths of the U.S. and U.K. are diverging
While the UK has taken a stricter stance, discussions in the U.S. market about similar products are intensifying. Reuters cited CME Group CEO Terry Duffy, who called crypto perpetual contracts a “disaster waiting to happen” and criticized the U.S. Commodity Futures Trading Commission’s approval process for such novel and complex products.
Meanwhile, Jeffrey Sprecher, CEO of Intercontinental Exchange, said that the parent company of the New York Stock Exchange is studying Hyperliquid’s model and has asked regulators why traditional trading venues cannot offer similar products. Two days later, the CFTC approved the prediction market platform Kalshi to offer Bitcoin perpetual futures.
Ability to withstand extreme market conditions is under scrutiny
The report noted that, as of May 20, Hyperliquid's year-to-date revenue reached approximately $255 million, and the HYPE token rose 101% during the same period. As trading volume grows, traditional financial institutions can no longer regard such platforms as niche markets.
Matthew Pinnock, Chief Operating Officer of the DeFi institution Altura DeFi, said that regulators are currently more focused on whether such markets can remain stable during periods of extreme volatility, including whether liquidation systems, margin rules, and market monitoring mechanisms are sufficient to withstand rapid price reversals.