Compliance
HTX and FCA Settlement Talks Amid Ongoing Sanctions for UK Users
HTX, a cryptocurrency exchange, is currently in discussions with the UK's Financial Conduct Authority (FCA) to resolve a legal case concerning unauthorized crypto advertisements. The FCA has set a deadline for late August to finalize the terms of the settlement.
Since October 2023, HTX has been on the FCA's warning list, and following a lawsuit in October 2025, the exchange ceased accepting new UK customers while allowing existing users to access their accounts. However, the situation worsened on May 26, 2026, when the UK sanctioned Huobi Global S.A., a company linked to HTX, leading to account freezes for some UK customers who were informed they needed permission to access their funds.
The FCA's court filing outlines three main requests: a ruling that HTX violated advertising laws, an order to halt further promotions, and the recovery of costs. Notably, this settlement would not address the sanctions or guarantee access to frozen funds for users.
HTX has reported that user funds remain secure, but the ongoing sanctions complicate the situation for UK users. The FCA's actions have led to a significant drop in UK traffic to the exchange, with visits plummeting from 4.6 million in 2023 to just 13,000 in 2024.
In addition to the FCA's concerns, HTX's management of reserves has come under scrutiny. Reports indicate that HTX has moved a substantial portion of its reserves to an undisclosed third party, raising questions about transparency and compliance. Blockchain analysis has traced movements of HTX's assets to Poloniex, another exchange associated with Justin Sun, further complicating the narrative around HTX's financial practices.
As the August deadline approaches, the outcome of the FCA negotiations will be critical for HTX and its UK users, who are still grappling with the implications of the sanctions.
FAQ
What is the current situation between HTX and the FCA?
HTX is in discussions with the UK's Financial Conduct Authority (FCA) to resolve a legal case regarding unauthorized crypto advertisements. The FCA has set a deadline for late August to finalize the settlement terms.
How have the FCA's actions affected HTX's operations in the UK?
Following the FCA's warning and subsequent lawsuit, HTX ceased accepting new UK customers and allowed existing users to access their accounts. However, sanctions imposed on Huobi Global S.A., linked to HTX, have led to account freezes for some UK customers.
What are the main requests outlined in the FCA's court filing against HTX?
The FCA's filing requests a ruling that HTX violated advertising laws, an order to halt further promotions, and the recovery of costs related to the case.
Will the settlement with the FCA resolve the sanctions affecting UK users?
No, the settlement will not address the sanctions or guarantee access to frozen funds for users. It primarily focuses on the advertising violations.
What concerns have been raised about HTX's management of reserves?
Reports indicate that HTX has moved a significant portion of its reserves to an undisclosed third party, raising transparency and compliance concerns. Additionally, blockchain analysis has traced some of HTX's assets to Poloniex, complicating the narrative around its financial practices.