The United Kingdom’s Financial Conduct Authority (FCA) has initiated legal proceedings against cryptocurrency exchange HTX, formerly known as Huobi, over allegations of unlawful promotion of digital asset services within the country.
The FCA filed the case in the High Court in London on Thursday, underscoring its ongoing efforts to regulate the crypto sector and protect consumers. According to the regulator, HTX has been promoting financial services related to digital assets without obtaining the necessary authorization from UK authorities.
The exchange, which was acquired in 2022 by Justin Sun, the founder of Tron, has drawn regulatory scrutiny since 2023 when the FCA first issued warnings cautioning consumers against engaging with Huobi’s UK offerings. The FCA reiterated that Huobi, now HTX, was not permitted to advertise or provide financial services in the UK, a stance intended to shield investors from potential risks associated with unregulated entities.
An FCA spokesperson emphasized the importance of maintaining market integrity and consumer protection, stating, “This action is part of our commitment to protect consumers and uphold the integrity of U.K. financial markets. We have seen crypto firms react positively to our financial promotions rules and regulation; however, where we still see poor practices, we will not hesitate to take action where firms appear to be breaching our rules.”
The regulator’s move follows a broader trend of tightening crypto oversight in the UK amidst rapid growth and increasing concerns about investor risks. The FCA’s enforcement against HTX signals its readiness to pursue legal remedies when firms operate outside the approved regulatory framework.
HTX has not publicly responded to requests for comment on the FCA’s lawsuit as of this writing.
This development adds to the growing number of regulatory challenges faced by crypto exchanges operating globally, highlighting the complex landscape that companies must navigate to remain compliant while offering digital asset services.
