CryptoPotato • October 7th 2026, 9:55 PM
Hyperliquid Faces Singapore Regulatory Questions Despite Local HQ: Report
Key Summary
Hyperliquid, a decentralized trading platform claiming to be based in Singapore, is facing regulatory questions from the Monetary Authority of Singapore (MAS) due to its decentralized nature, despite its corporate headquarters in the city-state. The platform has grown significantly, with $730.5 million in revenue and $723.7 million in operating net income, but its regulatory status remains unclear.
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Regulatory Questions Arise Over Hyperliquid's Jurisdiction
MAS Questions Where Hyperliquid Falls Under RegulationAccording to a Financial Times report, the Monetary Authority of Singapore (MAS) is not aware of Hyperliquid being regulated in any major jurisdiction and has previously warned investors that its perpetual futures are not regulated by the authority. People familiar with MAS's thinking reportedly told the FT that the regulator did not consider the platform to be based in Singapore because of its decentralized nature. This could place the protocol outside MAS's jurisdiction even though the corporate entity is located in the country.
Hyperliquid's Stance on Regulation
Hyperliquid Labs confirmed to the FT that it is based in Singapore, citing job advertisements and company documents that identify Singapore as its registered headquarters. The company stated that Hyperliquid is unregulated and 'is not, and has never claimed to be, licensed or authorized by MAS,' while adding that it respected regulators' roles and remained committed to engaging with them.
Growing Regulatory Concerns
The regulatory question has come at a time when the platform is broadening the type of markets available through HIP-3, its deployer-based perpetual futures system. At TOKEN2049 Singapore, founder Jeff Yan stated that HIP-3 markets accounted for about 51% of trading volume at one point in July, and Hyperliquid Financials data puts HIP-3 at 36.6% of total perpetual derivatives volume in the third quarter, up from 32.7% in the second quarter. Yan argued that users are moving toward on-chain versions of financial products that were previously harder to access, pointing to perpetual contracts tied to assets such as crude oil and pre-IPO markets.
HYPE Activity Grows
HYPE, the platform's native token, has also moved well beyond its earlier August peak, when it passed $82 to set a then-record high, after it got to within touching distance of $98 on September 23. However, at the time of writing it had retreated more than 7% from that ATH and was trading near $91 after falling about 2% over 24 hours.
#Singapore#Crypto#SEC#Hyperliquid