FCA Takes Legal Action Against HTX Over UK Crypto Promotion Breaches

The UK Financial Conduct Authority (FCA) has escalated enforcement action against crypto exchange HTX, alleging that the platform continued to promote cryptoasset services to UK consumers in violation of the country’s financial promotion regime.

In a statement published Tuesday, the regulator said it has commenced legal proceedings against HTX — formerly known as Huobi — for allegedly issuing unauthorized financial promotions through its website and multiple social media platforms, including TikTok, X, Facebook, Instagram, and YouTube.

The action follows the implementation of the UK’s crypto financial promotions framework in October 2023, which requires firms marketing cryptoassets to UK consumers to obtain authorization or have their promotions approved by an authorized entity. Breaches of the regime constitute a criminal offence under UK law.

FCA cites repeated non-compliance

According to the FCA, HTX had previously been warned that its marketing activity did not comply with UK requirements but continued to publish promotions accessible to UK users. The regulator also cited concerns over the exchange’s opaque corporate structure and said multiple attempts to engage with the firm went unanswered.

While HTX has taken steps to prevent new UK customers from registering accounts following the start of proceedings, the FCA said existing UK users can still view promotions deemed unlawful. The regulator added that HTX has not provided assurances that access restrictions will be maintained on a permanent basis.

Steve Smart, joint executive director of enforcement and market oversight at the FCA, said the case reflects the regulator’s intent to enforce compliance across the crypto sector.

“HTX’s conduct stands in stark contrast to the majority of firms working to comply with the FCA’s regime,” Smart said. “This is the first time we’ve taken enforcement action against a crypto firm illegally marketing their products to UK consumers.”

Platform restrictions and consumer warnings

As part of its enforcement measures, the FCA said it has requested that social media platforms block HTX accounts for UK-based users and has asked Apple and Google to remove HTX applications from their UK app stores.

HTX remains listed on the FCA’s Warning List, indicating that UK consumers engaging with the firm would not be eligible for protections provided by the Financial Ombudsman Service and would be unlikely to recover funds in the event of firm failure.

Enforcement trajectory

The current proceedings represent the latest step in a regulatory sequence that began with supervisory warnings in 2023, followed by HTX’s inclusion on the FCA’s Warning List, and culminated in High Court action in October 2025.

At that time, the FCA initiated proceedings in the Chancery Division of the High Court against entities linked to HTX, including individuals described as exercising control over the exchange and its promotional activity. While the platform has previously been publicly associated with entrepreneur Justin Sun, the FCA has not named him in its formal filings.

The case has been referenced in broader industry discussions around the UK’s crypto marketing framework. In late 2025, Kraken’s co-chief executive publicly criticized the regime as restrictive, citing the FCA’s enforcement action against HTX as illustrative of the regulator’s approach.