Regulatory Divide: Backpack vs Hyperliquid
Backpack and Hyperliquid are two major players in the crypto market, offering perpetual venues for trading. One of the key differences between them is their regulatory standing. Backpack has obtained MiCA authorisation for its European entity, allowing it to passport services across the EU under MiFID II supervision.
This means that EU clients can access a wider range of markets and have more protection when trading with Backpack. However, this comes at a cost, as fees are higher compared to some fee-free competitors.
On the other hand, Hyperliquid is not authorised in the EU and does not have a regulated counterparty. Despite this, it offers low CEX-level fees from 0.015% maker / 0.045% taker and no network fees on trades.
Hyperliquid also prides itself on being a decentralised exchange (DEX) with self-custody capabilities, requiring no mandatory KYC for users. However, it does not offer the same level of regulatory protection as Backpack.