The UK’s Financial Conduct Authority (FCA) has taken legal action against the cryptocurrency exchange HTX. The regulator says HTX has been promoting crypto services to UK consumers illegally.
To stop this, the FCA has asked social media platforms and app stores to block HTX in the UK. The exchange, formerly known as Huobi, hides the identities of its owners and operators, making it hard for authorities to track.
While new UK users cannot create accounts, existing customers can still access illegal promotions. This is the first time the FCA has acted against a crypto firm for illegal marketing in the UK.
Regulatory Measures Against HTX
In October, the UK’s Financial Conduct Authority filed a lawsuit against HTX and some unnamed associates because the exchange repeatedly promoted crypto services illegally to UK users.
The FCA has asked Google and Apple to remove HTX apps from their stores in the UK. Social media platforms including TikTok, X, Facebook, Instagram, and YouTube have also been asked to block HTX accounts so UK consumers cannot access them.
These actions are part of the regulator’s efforts to protect British users from unlawful crypto promotions and ensure that all crypto platforms follow the rules.
Opaque Operations Raise Concerns
HTX, which was formerly known as Huobi, has a complicated and unclear structure that makes it difficult to know who owns or runs the company. The UK’s Financial Conduct Authority (FCA) has tried several times to contact HTX, but the company has not responded.
Although HTX has stopped new users in the UK from creating accounts, people who already have accounts can still see and access promotions that the FCA considers illegal.
The exchange was founded in 2013 and lists Chinese crypto entrepreneur Justin Sun as a global adviser.
Sun is known for his involvement in major crypto projects and investments, but he was not named in the FCA’s lawsuit against HTX. This situation highlights concerns about transparency and consumer protection in crypto trading.
Implications for the Crypto Market
Steve Smart, joint executive director of enforcement and market oversight at the FCA, said this is the first time the regulator has taken action against a crypto exchange for illegally marketing its services to UK consumers.
He warned that the FCA will continue to take strong measures against firms that ignore UK financial rules. This case highlights the risks of using unregulated crypto platforms, which may expose investors to fraud or misleading promotions.
Consumers are advised to carefully check any crypto investment opportunities and only use platforms that operate transparently and follow regulatory guidelines. Staying cautious can help protect individuals from potential losses and ensure safer participation in the crypto market.
