UK regulator sues HTX in High Court for illegal crypto promotions
The UK Financial Conduct Authority (FCA) has begun High Court proceedings against Panama-registered crypto exchange HTX (formerly Huobi Global) and unnamed individuals for allegedly continuing to promote crypto services to UK consumers after repeated warnings. Filed in the Chancery Division under the FCA’s Financial Promotions (FinProm) regime introduced in October 2023, the case — initiated in October 2025 with permission obtained in February 2025 to serve documents abroad — alleges HTX published prohibited promotional material on its website and social platforms including TikTok, X, Facebook, Instagram and YouTube. The FCA says illegal financial promotions to UK consumers are criminal offences; it has placed HTX on its Warning List, asked app stores to delist HTX apps in the UK, and sought blocking of UK-facing social accounts. The regulator said this is its first enforcement action under FinProm against a crypto firm for illegal marketing and warned that consumer complaints about HTX will not be covered by UK compensation schemes. Cointelegraph contacted HTX for comment and had not received a reply at publication. For traders: the action increases regulatory pressure on offshore exchanges serving UK customers, may reduce HTX access for UK users, raise withdrawal/operational risks for affected customers, and could shift UK retail flow to regulated platforms — monitor HTX liquidity, order-book depth, and any deposit/withdrawal notices for immediate trading risks.
Bearish
The FCA’s High Court action against HTX for illegal financial promotions raises immediate operational and access risks for the exchange’s UK user base. Short-term impacts are likely negative: UK users could face restricted access or app delisting, prompting urgent withdrawals and reduced order-book liquidity on HTX — increasing volatility and potential price declines for any tokens concentrated on the platform. The enforcement also signals heightened regulatory scrutiny on offshore exchanges targeting UK customers, which may reduce retail inflows to non-compliant venues and shift trading volume toward regulated platforms. Over the medium to long term, sustained enforcement could damage HTX’s reputation, reduce user trust, and impair its market share among UK traders. For the broader market, effects are more muted and concentrated on HTX and assets with significant liquidity on that exchange; systemic contagion is unlikely unless enforcement widens to other large offshore venues.