MAS adds Hyperliquid to 'red list': what this means for Singapore's DeFi sector
On June 26, the Monetary Authority of Singapore (MAS) expanded its "Investor Alert List" (IAL), adding the website of the popular perp-DEX Hyperliquid and the portal of the Hyper Foundation organization. This step is part of the regulator's systematic effort to cleanse the cryptocurrency space of unlicensed players.
Planned Warning, Not a Ban
It is important to understand that being placed on the IAL is not a sanction or a ban on operations. It is a formal signal to Singaporean investors that this service does not have a MAS license and may be mistakenly perceived as regulated. The Hyperliquid team responded promptly, emphasizing that being added to the list is not an enforcement measure. They reminded that their platform is an open, public infrastructure that has never claimed to be a licensed financial institution.
"The regulator's list includes many major exchanges and DeFi protocols. Hyperliquid is a public infrastructure. It does not have and has never claimed to have a MAS license or authorization, and no one should consider it as such," representatives of the protocol stated.
Context: Tightening Regulation in Singapore
This is not the first time major players have been added to the IAL. Since the beginning of summer, centralized exchanges KuCoin and Bitget have already appeared on this list. Recall that in June 2025, MAS introduced a mandatory requirement for all crypto companies working with foreign clients to obtain a digital token service provider license. Those who fail to meet this requirement must cease servicing non-residents of Singapore.
Analysis and Forecast
From my perspective, MAS's actions are a logical continuation of the global trend toward regulating DeFi. Adding Hyperliquid to the IAL will not have an immediate impact on its operations, as the protocol is fully decentralized and has no servers within Singapore's jurisdiction. However, it sets a precedent: regulators are beginning to target not only CEXs but also DeFi protocol interfaces. In the long term, this could force developers and validators to integrate geoblocking tools to avoid sanctions. The DeFi market is entering a new phase—a phase of compliance—and Hyperliquid is just the first warning sign.