FCA Sues Global Crypto Exchange HTX Over Unauthorised UK Promotions

Britain’s financial markets regulator has initiated legal action against HTX, a global cryptocurrency exchange, accusing the firm of unlawfully promoting crypto asset services to UK consumers. The Financial Conduct Authority (FCA) confirmed that it had filed civil proceedings in London’s High Court against HTX, formerly known as Huobi, for violating Britain’s financial promotions regime. According to the FCA’s website, HTX is not authorised to operate in the United Kingdom.

“This action is part of our commitment to protect consumers and uphold the integrity of UK financial markets,” an FCA spokesperson said, declining to comment further. Representatives for HTX did not immediately respond to a request for comment.

Founded in 2013, HTX lists Sun as a global adviser. Sun is also a notable supporter of the Trump family’s crypto venture, World Liberty Financial, having invested at least $75 million in the project’s tokens. Blockchain analysts have identified a wallet labelled “SUN,” associated with HTX, as the top holder of US President Donald Trump’s “$TRUMP” memecoin.

The FCA, which has stated its goal of developing a competitive and sustainable cryptoasset regime, introduced new rules in 2023 requiring firms promoting crypto assets to obtain authorisations and register with the FCA under anti-money-laundering regulations. Despite this, HTX remains on the FCA’s warning list, which highlights companies that consumers are advised to avoid.

The FCA’s lawsuit names Huobi Global and four groups referred to as “persons unknown” to encompass individuals such as the owners, operators, and heads of promotions at the business.

By fLEXI tEAM