I don't have specific information about a project that is building an exact replica of Hyperliquid with those three specific features (KYC, address freezing capability, and a matching engine on Microsoft Azure).

However, this describes characteristics of a **centralized exchange (CEX)**or**regulated derivatives platform** rather than a decentralized exchange. Some platforms that combine compliance features include:

- **dYdX** (though it moved toward decentralization)
- **Vertex Protocol** (hybrid model)
- Various **regulated perpetuals platforms** building compliance layers

If you're looking for a specific project, could you provide:
- Where you heard about this?
- Approximate timeline for launch?
- Any token or team names?

This would help me identify the exact project you're referring to.