Robinhood offers crypto asset tied to FCA warning list

Robinhood, a UK-based fintech, is offering its customers access to a cryptocurrency asset, Hyperliquid (HYPE), despite the original platform and its governing body being listed on the Financial Conduct Authority (FCA) warning list. Hyperliquid and the Hyper Foundation were warned by the FCA in May 2026 for operating without proper authorization. The FCA expects authorized firms to consider the warning list when offering products to customers.

Robinhood's spokesperson clarified that cryptocurrency trading is facilitated through Bitstamp UK Ltd, which is registered with the FCA as a cryptoasset service provider. Robinhood undergoes a thorough listing review and approval process for every asset. However, the FCA declined to comment on Robinhood's specific situation.

Regulation of Robinhood's offerings is minimal, as the vast majority of cryptocurrencies are not regulated in the UK. As such, customers purchasing $HYPE will not receive the same level of protection as they would with regulated assets. The UK's broader crypto regulatory regime, aimed at eliminating non-compliant entities, is set to roll out in October 2027.

The decision to offer unregulated assets like $HYPE has sparked discussions about the FCA's consumer duty, which mandates firms to prevent foreseeable harm and act in consumers' best interests. Since $HYPE is unregulated, it falls outside the purview of the consumer duty. Nevertheless, the FCA takes into account all information about firms and their offerings when assessing potential consumer harm. Non-compliance may lead to regulatory action.