UK Regulator Sues HTX as Crackdown on Unregistered Crypto Exchanges Intensifies

The UK’s Financial Conduct Authority (FCA) has escalated its crackdown on unregistered and non-compliant crypto exchanges, filing a lawsuit against HTX — the global digital asset exchange advised by Chinese entrepreneur Justin Sun — for unlawfully promoting crypto asset services to UK consumers.

The FCA said it launched civil proceedings in London’s High Court against HTX (formerly Huobi) for breaching the country’s financial promotions regime. The exchange, which is not authorised to operate in the UK, is accused of offering crypto-related products and services without proper registration or approval.

“This action is part of our commitment to protect consumers and uphold the integrity of UK financial markets,” an FCA spokesperson said, declining to provide further comment.

HTX’s Links to Justin Sun and Trump’s Crypto Project

Founded in 2013, HTX counts Justin Sun — a controversial figure in the crypto industry — as a global adviser. Sun is also a known backer of the Trump family’s crypto venture, World Liberty Financial, having reportedly invested at least $75 million in its token offerings.

Blockchain analysts identified a wallet labelled “SUN”, believed to belong to HTX, as the top holder of former US President Donald Trump’s "$TRUMP" memecoin, further linking Sun’s ecosystem to politically connected digital assets.

Part of a Wider FCA Enforcement Wave

According to a recent CoinInsider report, the FCA’s lawsuit against HTX comes amid a broader enforcement campaign targeting hundreds of unregistered crypto platforms operating in or marketing to UK consumers.

Throughout October, the regulator issued hundreds of warnings to firms that failed to meet its registration and financial promotion requirements. The flagged exchanges include Elite Bit Markets, Nexure Gainbit, Plux Crypto, and HTX.

The FCA warned that such entities “may pose a higher risk” to consumers because they have not complied with UK rules, particularly regarding anti-money-laundering (AML) and financial promotion standards.

Stricter Oversight Under the 2023 Rules

The FCA introduced tighter crypto promotion rules in 2023, requiring firms that market digital assets to UK consumers to either:

• Obtain FCA authorisation,
• Have their promotions approved by an authorised firm, or
• Register under the UK’s Money Laundering Regulations (MLR).

Under the new regime, crypto promotions must include clear risk warnings, meet transparency standards, and comply with Know Your Customer (KYC) and AML controls.

Firms found in violation may face civil penalties, regulatory bans, or even criminal charges, with possible prison terms for executives in severe cases.

HTX on the FCA’s Warning List

HTX remains on the FCA’s warning list, which highlights unauthorised companies that consumers are advised to avoid. The regulator’s lawsuit names Huobi Global along with four “persons unknown,” referring to individuals who may include owners, operators, or those overseeing marketing and promotions at the firm.

Balancing Innovation and Investor Protection

The FCA’s recent actions underscore its commitment to ensuring that crypto innovation does not come at the expense of consumer safety.

While the UK continues to position itself as a competitive hub for digital assets—including easing certain restrictions such as retail access to crypto exchange-traded notes (ETNs)—regulators are simultaneously tightening compliance oversight to reduce fraud and market risk.

For crypto exchanges, the message is clear: operating in or promoting to UK consumers now demands full compliance, registration, and transparency. Those that fail to meet these standards risk legal action and reputational damage.