The Financial Conduct Authority (FCA) initiated legal action in the High Court against HTX. The regulator is claiming that the exchange continually promoted cryptoasset services to customers in the UK without the necessary approval.
The UK Financial Conduct Authority (FCA) said HTX continued to publish financial promotions despite prior warnings, distributing marketing materials through its website and major social platforms including TikTok, X, Facebook, Instagram, and YouTube.
In its statement, the regulator also characterized HTX’s corporate structure as opaque and said the firm had failed to engage constructively with supervisory enquiries. That combination — ongoing promotions and limited regulatory cooperation — prompted formal enforcement steps.
The FCA initiated High Court proceedings against Huobi Global S.A. and “Persons Unknown,” a legal mechanism often used when responsibility may extend beyond clearly identified entities. In parallel, the regulator requested that major social media platforms block HTX accounts for UK-based users and asked Google Play and Apple to remove HTX’s mobile applications from UK app stores.
According to the regulator, HTX took some remedial steps after proceedings began, including restricting new UK customer registrations. However, existing UK users reportedly remained able to log in and view the contested promotions. The FCA said it received no assurance that the restrictions would be permanent, maintaining that consumer risk therefore persisted.
What the FCA alleges and why it matters
Financial promotions issued without proper authorization bypass safeguards such as access to the Financial Ombudsman Service and statutory compensation mechanisms if a firm fails. For retail users, that gap limits recourse in the event of loss. For institutional clients and crypto treasuries, it raises counterparty and operational risk considerations when evaluating venue relationships.
From a market-structure perspective, the practical implications extend beyond marketing compliance. When an exchange becomes subject to High Court proceedings and platform-level restrictions, disruptions can affect onboarding, API connectivity, liquidity access, and order execution. Trading desks and corporate treasuries may need to reassess exposure limits, contractual protections, and custody arrangements when dealing with venues under active regulatory scrutiny.
The proceedings are ongoing in the Chancery Division and will ultimately determine whether the FCA’s requested platform and app-store restrictions are upheld. The outcome is likely to shape how assertively the regulator pursues other non-UK-domiciled exchanges marketing into the UK.
