UK Regulator Sues Crypto Exchange HTX for Unlawful Promotions
The UK’s Financial Conduct Authority (FCA) has filed a lawsuit against global cryptocurrency exchange HTX — formerly known as Huobi — accusing the company of illegally promoting crypto asset services to British consumers without authorization.
The regulator confirmed on Wednesday that it had launched civil proceedings in London’s High Court, arguing that HTX breached Britain’s strict financial promotions regime, which requires any firm marketing crypto services in the country to be registered and authorised. HTX, the FCA’s database shows, is not authorised to operate in the UK.
“This action is part of our commitment to protect consumers and uphold the integrity of UK financial markets,” an FCA spokesperson said, adding that unlicensed promotions could mislead investors about the risks of digital assets.
HTX, founded in 2013, lists Chinese entrepreneur Justin Sun as a global adviser. Sun, a controversial figure in the crypto world, has drawn attention for his links to World Liberty Financial, the Trump family’s crypto venture, and for his financial support of its $TRUMP memecoin, where a blockchain wallet labeled “SUN” was identified as the largest holder.
The FCA introduced new regulations in 2023 to bring crypto advertising under tighter control, forcing exchanges to include risk warnings and secure approval from authorized firms. These rules form part of Britain’s push to develop a “competitive yet responsible” crypto regime.
HTX currently appears on the FCA’s warning list, which identifies companies that investors are urged to avoid. The lawsuit, filed against Huobi Global and four “persons unknown” — including the exchange’s owners, operators, and promotion heads — signals the regulator’s intent to hold overseas firms accountable when their activities target UK consumers.
The case underscores Britain’s broader crackdown on unregulated crypto activity, as authorities attempt to balance innovation with consumer protection amid a volatile global digital asset market.
