Decentralized trading platform Hyperliquid has confirmed its registration in Singapore, but the city-state's financial regulator, the Monetary Authority of Singapore (MAS), does not consider the exchange to be within its jurisdiction, according to a Financial Times report published Tuesday.
Regulatory Ambiguity in Singapore
The exchange's team of approximately 11 people, led by co-founder Jeff Yan, relocated to Singapore in 2024 but has never applied for an MAS license. On June 26, MAS placed Hyperliquid on its crypto warning list, which flags entities that the public might mistakenly believe are regulated by the central bank.
Hyperliquid responded by stating that it operates permissionless infrastructure where users maintain custody of their own funds. Trades settle directly on-chain, which law firm CMS noted differs from traditional rules targeting exchange operators, trade brokers, and asset custodians. However, Kyle Samani, chairman of Forward Industries, publicly challenged the claim days later, stating, "Hyperliquid is not permissionless. Stop gaslighting the public."
In the United States, regulatory scrutiny is also accelerating as the Commodity Futures Trading Commission (CFTC) seeks public comment on new crypto trading rules, citing the $8 billion FTX fraud as its motivation. This comes amid ongoing enforcement actions across the sector, such as the DOJ pressing Tornado Cash prosecutions.
Strict Local Deadlines and Market Performance
Singapore has already begun tightening requirements for digital asset service providers. MAS established a deadline of June 30, 2025, for local firms serving only overseas clients to secure a license or cease operations, while indicating it would generally refrain from granting those authorizations.
Despite the regulatory warning issued in June, Hyperliquid's native HYPE token is trading at $91.64, down 3% over the past 24 hours, even as the broader market continues to evolve alongside altcoin market trends.
Key Takeaways
- Hyperliquid operates with an 11-person team in Singapore led by Jeff Yan without an MAS license.
- MAS added the entity to its investor warning list on June 26, ahead of a June 30, 2025 overseas licensing deadline.
- Forward Industries chairman Kyle Samani disputed Hyperliquid's permissionless classification.
- Native HYPE tokens trade at $91.64, reflecting a 3% 24-hour decline.
Why It Matters
The position taken by MAS regarding Hyperliquid illustrates the challenges regulators face when applying traditional financial frameworks to non-custodial decentralized platforms. As jurisdictions enforce stricter rules on locally based teams targeting global users, decentralized exchanges will face increasing scrutiny over whether their technical architecture truly exempts them from custodial oversight.
