Singapore's regulator has added Hyperliquid to its "red list": what this means for the DeFi sector
On June 26, the Monetary Authority of Singapore (MAS) added the decentralized exchange Hyperliquid to its Investor Alert List (IAL). This list includes services that may be mistakenly perceived by users as licensed and regulated financial institutions.
Hyperliquid and Hyper Foundation in the Spotlight
In addition to the perp-DEX itself, the regulator also added the website of the Hyper Foundation organization to the list. This is standard practice for MAS — the authority aims to warn retail investors about the risks of interacting with unlicensed platforms.
The Hyperliquid team quickly responded to the event, emphasizing that inclusion in the IAL does not constitute a ban on operations or the application of enforcement measures. "This is merely a list of organizations that, based on information available to MAS, may be mistakenly perceived as licensed. Hyperliquid is an open public infrastructure. It has never claimed to have a MAS license, and users should not treat it as such," platform representatives stated.
Indeed, the IAL is not a blacklist but rather a consumer protection mechanism. Major players such as KuCoin and Bitget are already included, confirming that not only DeFi protocols but also centralized exchanges (CEX) fall under the regulator's scrutiny.
Context: Tightening Rules for Crypto Companies
Recall that in June 2025, MAS tightened requirements for cryptocurrency companies, mandating that they obtain a license as a digital token service provider. Otherwise, they must cease servicing foreign clients. This move by the Singapore regulator is part of a global trend toward increased oversight of the crypto industry.
My analysis: The inclusion of Hyperliquid in the IAL is a signal to the market. MAS is making it clear that DeFi protocols are not outside the legal framework. However, for the platform itself, this event is more reputational than operational in nature. As long as the regulator does not proceed to block domains or restrict access for Singaporean users, Hyperliquid can continue operating as before. Nevertheless, this case highlights the growing need for the DeFi sector to develop compliance mechanisms, especially in jurisdictions with stringent licensing requirements.