UK’s FCA Sues HTX Crypto Exchange for Unlawful Promotion of Digital Assets

TL;DR

• The UK’s financial regulator has sued the cryptocurrency exchange HTX for unlawfully promoting digital asset services in the country.

• The FCA issued warnings as early as 2023 about the exchange.

FCA Sues HTX Crypto Exchange 

The U.K.'s Financial Conduct Authority (FCA) announced on Thursday that it has sued cryptocurrency exchange HTX for unlawfully promoting digital asset services in the country.

The regulator began legal proceedings against the crypto exchange, formerly known as Huobi, in the High Court, London.

This latest development comes after the FCA previously issued warnings in 2023 that the cryptocurrency exchange may be promoting financial services without its permission. The exchange was acquired by Tron founder Justin Sun in 2022, according to the Bloomberg Billionaires Index. 

Back then, the regulator warned consumers about dealing with Huobi, as it was unauthorized to promote financial services in the U.K. An FCA spokesperson stated that,

"This action is part of our commitment to protect consumers and uphold the integrity of U.K. financial markets. We have seen crypto firms react positively to our financial promotions rules and regulations; however, where we still see poor practices, we will not hesitate to take action where firms appear to be breaching our rules."

Several cryptocurrency exchanges have obtained licenses from the FCA to enable them to operate in the U.K. In February, Coinbase officially secured approval from the FCA as a registered virtual asset service provider (VASP), cementing its position as the UK’s largest registered cryptocurrency exchange.