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The UK Financial Conduct Authority secured a High Court order preventing crypto exchange HTX from knowingly promoting its services unlawfully to UK customers. The FCA says HTX has taken steps to leave the country and is no longer active there, with UK customers unable to make deposits. The order follows legal action over alleged breaches of financial promotion rules.
The UK’s Financial Conduct Authority (FCA) has secured a High Court order preventing crypto exchange HTX from knowingly promoting cryptoasset services unlawfully to UK customers. The regulator says the exchange took steps to leave the country after legal proceedings began and is now inactive in the UK, where customers are unable to make deposits.
The FCA said it took legal action against HTX, formerly known as Huobi, in October after the company repeatedly failed to engage with the regulator over UK financial promotion rules. The watchdog said HTX continued promoting its crypto services online while the issue remained unresolved.
The promotions appeared on HTX’s website and social media accounts, including TikTok, X, Facebook, Instagram and YouTube, according to the FCA. The regulator filed its civil case in London’s High Court against the exchange and “persons unknown” connected to the platform. The resulting order bars HTX from knowingly making unlawful cryptoasset promotions to UK consumers.
The FCA said HTX has taken steps to exit the UK since proceedings started. Finextra reported that the exchange is no longer active in the country and that UK users cannot make deposits. The available information does not establish whether existing customers can withdraw funds or use other account functions.
The FCA’s Reach Over Offshore Exchanges
The case signals that the FCA is prepared to pursue overseas crypto firms when it believes their marketing reaches UK consumers in breach of local rules. In a statement, the regulator stressed that a company’s location does not, in its view, remove it from the reach of UK law. The High Court order gives that position legal force in HTX’s case and restricts the exchange’s ability to promote services to UK customers.
For consumers, the reported halt to deposits means access to a familiar exchange may be limited, although the material provided does not describe what arrangements HTX has made for existing users. Anyone with an account should distinguish between the reported inability to deposit and the still-unclear status of withdrawals, trading or other services.
The development also illustrates the regulatory risks for crypto platforms operating across borders. A platform’s presence on global websites or social media can bring its marketing under scrutiny in markets where it seeks customers. The case concerns financial promotions and compliance; it is not a finding in the supplied report about the safety or performance of any particular cryptoasset.
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From Engagement Attempts to Court
The FCA said it repeatedly attempted to engage with HTX before bringing the case, but that the exchange did not respond to those efforts. The regulator also described HTX’s organisational structure as opaque, saying the identities of its owners and website operators were concealed. Those are the FCA’s characterisations; the supplied report does not provide a response from HTX.
HTX was formerly called Huobi. The report also notes links between the exchange and Justin Sun, described as a “global advisor” to HTX. It says Sun has invested tens of millions of dollars in tokens issued by the Trump family’s World Liberty Financial. The report further says Sun and three companies faced a US suit alleging “wash trading,” which was paused last year. That separate US matter is distinct from the FCA’s UK financial-promotion case and does not determine its outcome.
“Crypto firms should be under no illusion: being based overseas does not put them beyond the reach of UK law.”
— Steve Smart, FCA executive director of enforcement and market oversight
Customer Access and HTX’s Response
The supplied report does not include a statement from HTX responding to the FCA’s allegations or explaining its departure. It also does not specify the precise terms of the High Court order, when HTX’s UK exit will be complete, or whether the company disputes the regulator’s account.
For customers, the immediate reported restriction is that UK users cannot make deposits. The status of withdrawals, existing balances, trading, customer support and account closures is not set out. The report also does not explain how the FCA will monitor compliance across HTX’s website and social media accounts, or whether further court proceedings are planned.
Monitoring the UK Market Exit
The next steps depend on whether HTX fully stops targeting UK consumers and complies with the High Court order. The FCA may continue monitoring the exchange’s online promotions and UK-facing services, but the supplied report does not announce a timetable for further action or any additional hearing.
UK customers seeking clarity will need information from HTX about access to existing accounts and funds. Until the company or regulator provides details, the reported inability to deposit should not be taken as confirmation that every other service has ended. The regulator’s case remains focused on unlawful cryptoasset promotions, while the practical consequences of HTX’s withdrawal are still developing.
Key Questions
Why did the FCA take HTX to court?
The FCA said HTX repeatedly failed to engage with it over UK financial promotion rules and continued promoting crypto services online. The regulator brought a civil case in London’s High Court against HTX and “persons unknown” connected to the platform.
What does the High Court order prevent?
According to the report, the order prevents HTX from knowingly promoting cryptoasset services unlawfully to UK customers. The supplied material does not give the order’s full terms.
Has HTX stopped operating in the UK?
The FCA says HTX took steps to exit after legal proceedings began. Finextra reports that the exchange is no longer active in the country and that UK customers cannot make deposits. The status of other account functions is not specified.
Can UK customers withdraw their funds?
The report does not say whether withdrawals remain available or explain how existing balances will be handled. Customers should seek current account information directly from HTX and check for any notices from the company or regulator.
Has HTX responded to the FCA’s claims?
No response from HTX is included in the supplied report. The regulator’s statements about the company and its conduct should therefore be attributed to the FCA.
Source: finextra.com
