Singapore's regulator has added Hyperliquid to its "red list": what this means for DeFi
On June 26, the Monetary Authority of Singapore (MAS) officially added the website of the decentralized exchange Hyperliquid and its associated portal Hyper Foundation to its "Investor Alert List" (IAL). This action is not a direct ban or sanction, but it clearly signals to the market that these platforms do not have a MAS license and may mislead users regarding their status.
The Hyperliquid team responded promptly, emphasizing that inclusion in the IAL is neither a block nor an enforcement measure. In their statement, they noted: "The regulator's list includes many major exchanges and DeFi protocols. Hyperliquid is public infrastructure. We have never claimed to have a MAS license, and no one should perceive us as such. Nothing has changed on the network: users still self-custody their assets, and transactions are processed transparently."
Notably, since the beginning of summer, centralized giants KuCoin and Bitget have also been added to this same list. This indicates a systematic approach by the Singaporean regulator: it aims to clear the information space of platforms that could be mistakenly perceived as state-approved.
Let me remind you that in June 2025, MAS tightened the rules, requiring all crypto companies serving clients in Singapore to obtain a license as a digital token service provider. Otherwise, they face the termination of services for foreign users.
My expert opinion: The inclusion of Hyperliquid in the IAL is an important precedent for the DeFi sector. Regulators are no longer turning a blind eye to decentralized protocols. Hyperliquid, being public infrastructure without KYC, indeed cannot and should not obtain a MAS license. However, the very fact of the warning creates legal uncertainty for users in Singapore and could trigger a wave of similar actions from other jurisdictions. The market should prepare for stricter segregation: "permitted" and "non-permitted" DeFi protocols are the new reality.