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) to include the website of the popular perp-DEX Hyperliquid, as well as the domain of the Hyper Foundation organization. This regulatory action is not merely a formality but a clear signal to the market that even decentralized protocols are not beyond its scope of attention.
It is important to emphasize: being placed on the IAL is not a ban on operations or the imposition of sanctions. The list is designed to inform investors about companies that may be mistakenly perceived as licensed within Singapore's jurisdiction. MAS explicitly states that inclusion in the list is not an admission of guilt or grounds for enforcement measures.
The Hyperliquid team responded promptly and diplomatically. In their statement, they noted that the IAL is "a list that includes many major exchanges and DeFi protocols." They emphasized that Hyperliquid is a public infrastructure that has never claimed a MAS license. "Nothing has changed on the network. Users self-custody their assets, and transactions are processed transparently," platform representatives added.
It is worth noting that since the beginning of summer, centralized giants such as KuCoin and Bitget have already appeared on the list. This indicates a systematic approach by MAS: the regulator makes no distinction between CEX and DEX if they may be perceived as operating without a license.
As a reminder, in June 2025, MAS tightened rules, requiring all crypto companies serving foreign clients to obtain a digital token service provider license. This requirement sets a significant precedent for global DeFi protocols, which by definition have no geographical restrictions.
My analysis. The inclusion of Hyperliquid in the IAL is not the end for the protocol, but an important wake-up call for the entire industry. Singapore is consistently building a model of "regulated DeFi," where even decentralized applications must either comply with local regulations or clearly distance themselves from the Singaporean market. For Hyperliquid, as well as for other perp-DEXs, this means the need to strengthen legal protection and possibly implement geo-blocking. As for investors, it is worth remembering: "not prohibited" does not mean "recommended." Amid tightening regulations, holding assets on unlicensed platforms carries not only technical but also regulatory risks.