Crypto Exchange HTX Leaves UK and Settles Regulator’s Lawsuit Over Illegal Ads
Crypto exchange HTX has settled a lawsuit with the UK's Financial Conduct Authority and ceased operations in the country, agreeing not to promote its services to British consumers.
HTX, the cryptocurrency exchange formerly known as Huobi, has settled a lawsuit brought by the UK's Financial Conduct Authority and completely exited the British market. The regulator announced on Thursday that HTX has given court undertakings not to knowingly promote its services to UK consumers, marking the first legal action the FCA has taken against a crypto firm for marketing to British consumers since new financial promotion rules came into effect in October 2023.
The FCA confirmed that HTX is no longer active in the UK, with British users unable to deposit funds and new customers prevented from signing up. The exchange has committed to not targeting, soliciting, or actively seeking UK consumers through its website, mobile applications, or social media platforms.
Legal Battle
The FCA initiated legal proceedings against HTX in London's High Court in October 2025, naming Panama-incorporated Huobi Global S.A. and several groups of unidentified individuals operating the exchange and its accounts across multiple social media platforms including X, Facebook, Instagram, Telegram, TikTok, YouTube, Discord, Medium, and LinkedIn.
When making the case public in February, the regulator requested that social media companies block HTX's accounts for UK users and asked Apple and Google to remove its applications from their UK app stores. The FCA stated that HTX repeatedly failed to engage with authorities before deciding to leave the UK market.
Crypto firms should be 'under no illusion' that 'being based overseas does not put them beyond the reach of UK law.'
Settlement Terms
The settlement was formalized through a Tomlin order dated Tuesday, with confidential terms that do not constitute an admission of liability or wrongdoing by Huobi Global or any other party involved. The FCA directed remaining UK users to HTX's website for instructions on withdrawing their assets.
The regulator's more common approach to dealing with unauthorized firms is through its warning list, which names companies suspected of operating without proper authorization. According to FM Intelligence's fines and warnings tracker, the UK issued 240 warnings in the 30 days leading up to October 28.
Broader Regulatory Pressure
The legal action was part of increasing regulatory pressure on HTX. In May, the UK sanctioned the exchange along with 17 other crypto businesses accused of supporting Russia's economy, and the European Union added HTX to its Russia sanctions list in July. Binance subsequently stopped processing transactions with HTX and 10 other platforms starting August 23, citing regulatory developments, though HTX has disputed that the UK designation applies to its exchange.
HTX, which was rebranded from Huobi in 2023, saw $258 million flow out following a cyberattack that same year. Justin Sun, who took a controlling stake in the exchange in 2022, is described by HTX as an adviser.
For HTX to legally serve UK users again, it would need to pass an FCA review. The regulator opened its authorization window for crypto firms on September 30, with applications filed by February 28, 2027 to be assessed before the new regime begins on October 25, 2027. Data shows that between January 2020 and August 1, 2026, only 68 of 391 completed crypto applications resulted in registration, a rate of 17%.
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