Hyperliquid Exempt from EU Crypto Licence Requirements

Regulation (EU) 2023/1114, also known as MiCA, governs crypto-asset services in the EU. Article 59(1) requires a person to be authorised or have a registered office and place of effective management within the Union to provide such services.

However, this regulation does not apply to perpetual futures trading, which falls under the financial instruments directive (MiFID II). As a result, Hyperliquid, a platform offering perpetual futures trading, is not required to be listed as an authorised crypto-asset service provider under MiCA.

The ESMA register of authorised crypto-asset service providers shows 346 firms across the EU, with 89 being German institutions. However, no entry in this list contains the string 'Hyperliquid', and the platform does not appear on the register of non-compliant entities either.

Article 61 MiCA provides an exemption for clients who initiate services from third-country firms at their own initiative. However, this exemption is narrow and does not apply where a firm solicits clients in the Union or uses intermediaries to do so.