UK Regulator Launches Enforcement Action Against HTX Over Illegal Financial Promotions
The UK Financial Conduct Authority (FCA) has initiated legal action against HTX (formerly Huobi), a cryptocurrency exchange founded by Justin Sun, for illegally promoting crypto asset services to UK consumers. Under rules introduced in October 2023, crypto service providers must follow regulations to protect consumers from misleading marketing. Despite previous warnings, HTX continued its activities, prompting FCA enforcement. The regulator cited HTX’s opaque ownership and lack of engagement, and noted that while HTX has restricted new UK user registrations, existing users still have access to unlawful promotions. The company’s UK-facing social media accounts, including Facebook, Instagram, and TikTok, have become inaccessible. The FCA is expanding its regulatory framework for crypto, aiming to align it with traditional finance, with a full regulatory regime expected by 2027. Several crypto firms, such as Blockchain.com and Ripple, have recently gained FCA registration, placing them under stricter oversight. The FCA emphasized its commitment to enforcing rules to ensure consumer protection and a sustainable crypto market, marking this as its first enforcement action against illegal crypto marketing in the UK.
