The Financial Conduct Authority (FCA) of the United Kingdom has filed a civil lawsuit in the High Court against the cryptocurrency exchange HTX (formerly known as Huobi), which is advised by Chinese-American entrepreneur Justin Sun. The FCA accuses the platform of illegally promoting cryptocurrency services to UK users without the necessary authorization.
This is reported by Finway
FCA’s First Lawsuit Against a Crypto Company
HTX has become the first cryptocurrency exchange in the UK to face legal action for violating financial promotion rules. The regulator emphasized that this precedent should serve as a warning to other crypto companies about the necessity of obtaining official permission to operate in the UK market.
“The FCA has initiated civil proceedings in the High Court against HTX, a global cryptocurrency exchange, for illegally promoting crypto-asset services to British consumers in violation of the UK financial promotion regime. This action is part of our commitment to protecting consumers and maintaining the integrity of the financial markets in the United Kingdom.”
The regulator noted that most crypto platforms comply with the new rules; however, in cases of violations, the FCA is prepared to respond swiftly. HTX has been added to the official warning list of companies that, according to the FCA, are operating without proper registration.
Regulator’s Requirements for Crypto Companies and HTX’s Position
As early as October 2023, the FCA officially stated that HTX and KuCoin lacked licenses to operate in the UK, advising users to avoid these platforms. Under UK law, all cryptocurrency companies must register with the FCA, which includes a review of anti-money laundering (AML) systems and financial crime controls. HTX is not included in the list of nearly 50 companies that have successfully completed this process.
Despite the legal risks, HTX remains among the leading global cryptocurrency exchanges. In May 2024, the platform surpassed Coinbase in daily spot trading volumes, reaching $2.15 billion, and is only behind Binance, Bybit, and OKX.
The FCA is currently not disclosing details of the lawsuit but emphasizes that the HTX case is an important signal for the entire digital asset market regarding compliance with transparency and financial security standards.
In February 2024, Justin Sun publicly confirmed that he holds over 28,613 BTC (over $1.6 billion) on HTX, demonstrating his confidence in his own platform.