Robinhood offers crypto asset tied to FCA warning list
Robinhood is offering a crypto asset to UK retail customers whose native platform appears on the financial watchdog’s warning list.
The fintech has granted customers access to more than 50 cryptocurrencies this week on its app, including Hyperliquid ($HYPE).
But the original platform, also known as Hyperliquid, and its governing body the Hyper Foundation are on the Financial Conduct Authority’s (FCA) warning list of unauthorised firms.
The regulator issued a warning and added the derivatives platform to the list in May 2026. It cautioned that it may be providing or promoting financial services in the UK without FCA permission.
The watchdog expects authorised firms to take the warning list into account when considering what products to offer on their platform.
A Robinhood spokesperson said: “Cryptocurrency trading is offered through Bitstamp UK Ltd (“BSUK”), registered with the Financial Conduct Authority as a cryptoasset service provider.
“Every asset undergoes a robust listing review and approval process.”
The FCA was unable to comment on Robinhood’s position.
Regulation woes
Robinhood has approval to conduct business in the UK and is acting as an intermediary broker for customers wanting to purchase Hyperliquid.
Customers are able to buy and trade the assets directly through Bitstamp UK, which is part of Robinhood’s crypto business. Users do not directly interact with the Hyperliquid platform in the process.
Customers purchasing $HYPE alongside other crypto assets on offer will not receive watchdog protection as most are not regulated in the UK.
The wider UK crypto regulatory regime will come into force in October 2027. The move is expected to stamp out bad actors who refuse to hold a full financial licence.
Question of consumer duty
The firm’s decision to offer the asset also raised questions over the FCA’s consumer duty.
The duty sets out the watchdog’s standard of consumer protection in the UK. It requires firms to prevent consumers from foreseeable harm and act in their best interests.
$HYPE falls outside the scope of consumer duty as it is unregulated. But the watchdog takes into account all information to firms and their offerings as well as any potential consumer harm.
Where non-compliance is identified the watchdog acts to address the problem.