The UK’s Financial Conduct Authority (FCA) has stepped up enforcement action against cryptocurrency exchange HTX, alleging the platform continued to market cryptoasset services to UK consumers in violation of financial promotion rules.
In a statement released Tuesday, the regulator confirmed it has launched legal proceedings against HTX, formerly known as Huobi. The FCA claims the exchange published unlawful financial promotions on its website and across social media platforms including TikTok, X, Facebook, Instagram, and YouTube.
Alleged Breaches of Crypto Promotion Rules
The action centers on rules introduced in October 2023 that require firms promoting cryptoassets to UK consumers to meet strict financial promotion standards. Under the regime, companies must either be authorized by the FCA or have their promotions approved by an authorized firm. Failing to comply is considered a criminal offense.
According to the FCA, HTX had previously been warned about potential violations but allegedly continued to publish promotional content targeting UK users. The regulator also described the exchange’s corporate structure as opaque and said attempts to engage with the firm went unanswered.
While HTX has reportedly restricted new UK customers from opening accounts since the legal proceedings began, the FCA stated that existing UK users can still access what it considers unlawful promotions. The watchdog added that it has not received assurances that the restrictions will be permanent.
Steve Smart, the FCA’s joint executive director of enforcement and market oversight, emphasized the regulator’s commitment to upholding the rules.
“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. We’ll continue to act against firms who ignore our rules.”
Broader Enforcement Measures
As part of its consumer protection efforts, the FCA has asked social media companies to block HTX’s accounts for UK-based users. It has also requested that Apple and Google remove HTX’s apps from their UK app stores.
HTX is currently listed on the FCA’s Warning List. Firms on this list are not authorized to operate in the UK, and consumers who deal with them typically do not have access to the Financial Ombudsman Service. In the event of a company failure, customers are unlikely to recover their funds.
A Long-Running Regulatory Dispute
The legal proceedings represent the latest stage in a regulatory dispute that began in 2023. After initial warnings, HTX was added to the FCA’s Warning List, and in October 2025 the regulator initiated action in the High Court’s Chancery Division against entities linked to the exchange.
The case has previously been reported as involving a platform publicly associated with entrepreneur Justin Sun, though he has not been named in the FCA’s formal filings.
The FCA’s approach has fueled wider debate within the crypto industry about the UK’s marketing rules. In late 2025, Kraken’s co-CEO criticized the framework as overly restrictive, citing the action against HTX as an example of what he described as a tough regulatory stance.
What This Means for UK Crypto Users
For UK consumers, the case highlights the tightening regulatory environment around digital assets. The FCA has made clear that firms targeting UK customers must meet the same standards expected in traditional financial markets.
As the High Court proceedings continue, the outcome could shape how crypto exchanges operate in the UK and influence the broader conversation about balancing innovation with consumer protection.
For now, the message from the regulator is clear: compliance with financial promotion rules is not optional.
