Hyperliquid Recognized as Singapore Entity, but MAS Excludes It from Licensing as 'Outside Jurisdiction'

Singapore Registration of Hyperliquid and MAS's Stance

It has been revealed that Hyperliquid, known as a decentralized trading platform, has a development team based in Singapore.

A team of about 11 members, including co-founder Jeff Yan, is set to relocate to Singapore in 2024, and it has been confirmed that Hyperliquid Labs is registered in the country. However, the Monetary Authority of Singapore (MAS) has stated that it does not recognize the platform as being regulated in any major jurisdiction, indicating that it falls outside of regulatory oversight.

Hyperliquid has also acknowledged that it has never obtained a license or approval from MAS, emphasizing that the platform operates on a permissionless and on-chain infrastructure that assumes users manage their own funds. However, there are differing opinions and criticisms from industry stakeholders regarding the term "permissionless" and its actual implications.

Addition to MAS's Investor Warning List and Regulatory Background

On June 26, MAS added the Hyper Foundation's website and the Hyperliquid trading application to its "Investor Warning List." This list is intended to prevent general consumers from mistakenly believing that these services are under regulatory supervision and does not imply a ban on services, enforcement actions, or a determination of wrongdoing. Hyperliquid has acknowledged this point and expressed its intention to collaborate constructively with regulatory authorities.

Meanwhile, in Singapore, licensing requirements for digital token-related businesses targeting overseas customers have been tightened. MAS has mandated that affected companies either obtain a license by June 30, 2025, or cease operations, indicating a general policy of not granting licenses due to risks such as money laundering. However, there remains a regulatory gap regarding how existing financial regulations apply to Hyperliquid, which operates as a decentralized protocol.

Developments in External Markets and Regulatory Trends

As for movements outside Singapore, there are ongoing plans related to the regulatory environment in the United States and by other companies.

For example, Kraken's parent company, Payward, has announced plans regarding the regulated Hyperliquid perpetual market. Efforts are ongoing to establish legal regulations and compliance frameworks surrounding cryptocurrency derivatives.

Thus, it is necessary to separate the fact that Hyperliquid Labs is registered and operating in Singapore from the regulatory status of decentralized blockchain applications and perpetual futures operating on it. Given the current lack of direct regulation for on-chain derivatives in major jurisdictions, the platform continues to operate from its unique position.

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