FCA, HTX in Settlement Talks Over Illegal UK Crypto Promotions: Report
The UK Financial Conduct Authority and HTX are negotiating a possible settlement in the FCA’s case over unlawful crypto promotions to UK consumers, with High Court proceedings paused until late August. The FCA began the first UK enforcement action of its kind against a crypto exchange over marketing rules, seeking an injunction and a declaration that the defendants breached section 21 of the Financial Services and Markets Act, which prohibits unauthorized financial promotions. The claim names Huobi Global S.A. and several categories of “persons unknown” tied to HTX’s website, operators, and social accounts. The FCA says a UK-based staff member was able to trade on the platform using a UK IP address and UK driving license, and points to the site’s English-language interface, GBP support, and acceptance of UK ID. It also says HTX’s terms did not effectively block UK users from trading futures. HTX was added to the FCA warning list in 2023 and did not respond before action was filed.
