The UK’s financial regulator has escalated enforcement action against crypto exchange HTX, claiming that the firm continued to promote cryptoasset services to UK consumers in breach of financial promotion rules.
On Tuesday, the Financial Conduct Authority said it has begun legal proceedings against HTX — formerly known as Huobi — for allegedly publishing unlawful financial promotions on its website and across social media platforms, including TikTok, X, Facebook, Instagram, and YouTube.
Under rules introduced in October 2023, firms marketing cryptoassets to UK consumers must comply with strict financial promotion requirements, including authorization or approval of promotions. Breaching the regime is a criminal offence.
The FCA claimed that HTX had previously been warned about illegal promotions but continued publishing them. The regulator described HTX’s corporate structure as opaque and said repeated attempts to engage the firm had gone unanswered, according to a formal notice on the agency’s website.
Although HTX has taken steps to restrict new UK customers from registering accounts following the commencement of proceedings, the FCA said existing UK users can still access unlawful promotions and that the firm has not assured the regulator that those restrictions will be permanent.
Steve Smart, joint executive director of enforcement and market oversight at the FCA, noted the watchdog will continue to act against firms that ignore the rules.
“HTX’s conduct stands in stark contrast to the majority of firms working to comply with the FCA’s regime,” Smart said. “This is the first time we’ve taken enforcement action against a crypto firm illegally marketing their products to UK consumers. We’ll continue to act against firms who ignore our rules.”
As part of its consumer protection efforts, the FCA said it has asked social media platforms to block HTX’s accounts for UK-based users and requested the removal of HTX applications from Apple and Google app stores in the UK.
HTX is currently listed on the FCA’s Warning List, meaning UK consumers dealing with the firm would not have access to the Financial Ombudsman Service and are unlikely to recover funds if the company fails.
Long-running tussle
This week’s legal action marks the culmination of a regulatory trajectory linked to HTX that began with warnings in 2023, progressed to inclusion on the Warning List, and culminated in High Court proceedings in October 2025.
At that time, the FCA initiated action in the Chancery Division of the High Court against entities linked to HTX, including individuals described as controlling the exchange and managing its promotions. The case was previously reported as involving a platform publicly linked to entrepreneur Justin Sun, though he has not been named in the FCA’s formal filings.
The regulator’s enforcement posture has been cited in broader industry debate over the UK’s crypto marketing rules. In late 2025, Kraken’s co-CEO publicly criticized the regime as overly restrictive, referencing the FCA’s legal action against HTX as an example of its approach.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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