The Financial Conduct Authority (FCA) has launched civil proceedings in London’s High Court against HTX (formerly known as Huobi) in a landmark UK crypto promotions case, accusing the global crypto exchange of unlawfully marketing crypto-asset services to UK consumers. The FCA says HTX is not authorised to operate in Britain, and that its promotional activity breached Britain’s financial-promotions regime.
According to the FCA, HTX ran promotions in the UK without the necessary authorisation and failed to comply with the UK’s rules introduced in 2023 for firms marketing crypto-assets. The action names HTX (formerly Huobi Global) and four groups described as “persons unknown” — covering the owners, operators and heads of promotions at the business. The FCA said in its statement: “This action is part of our commitment to protect consumers and uphold the integrity of UK financial markets.”
HTX, Justin Sun and background
HTX was founded in 2013 and is advised by Justin Sun, the Chinese crypto entrepreneur who also backs the Trump family’s crypto venture World Liberty Financial. Sun reportedly spent at least USD 75 million on tokens issued by that venture. A wallet labelled “SUN”, reportedly belonging to HTX, was identified by blockchain analysts as the top holder of the “$TRUMP” memecoin.
Regulatory context: UK tightening crypto-asset promotion rules
The UK crypto regulatory framework has tightened substantially in recent years. In 2023 the FCA introduced new requirements for firms promoting crypto-assets: they must be authorised and must register under anti-money-laundering procedures if targeting UK consumers. HTX has been on the FCA’s Warning List since late 2023, which names companies that the regulator advises consumers to avoid dealing with.
Implications of the case
This case marks a significant step by the FCA in enforcing its crypto-asset marketing rules against overseas firms that target UK users. Industry watchers say it signals that unregistered platforms will face civil or possibly criminal enforcement if they breach the UK’s financial promotions regime. The outcome may shape the behaviour of other crypto exchanges that currently operate in regulatory grey-areas. For UK investors and consumers, the case underlines the importance of checking that a crypto services firm is authorised by the FCA before engaging. The regulator’s move may also prompt further scrutiny of high-profile names linked to unregistered platforms.
