UK FCA Flags Hyperliquid Amid Crypto Perpetual Futures Concerns
- The UK’s Financial Conduct Authority (FCA) listed Hyperliquid and Hyper Foundation as unauthorized on May 21.
- CME Group CEO Terry Duffy warned that crypto perpetual futures could pose systemic risks.
- Hyperliquid generated $255 million in revenue by May, with its HYPE token surging by 101% in the same period.
- The CFTC approved Kalshi to offer Bitcoin perpetual futures shortly after the UK warning.
Hyperliquid, a major player in decentralized crypto perpetual futures, faces scrutiny from UK regulators for operating without authorization, while U.S. regulators begin approving similar products under supervision. The situation highlights differing regulatory approaches between the UK and U.S., with potential implications for market stability.
The FCA’s warning and subsequent U.S. approvals underscore growing concerns over how these financial instruments fit within regulated markets, especially given their significant revenue generation and token performance this year. Source
