UK Regulator Takes Legal Action Against HTX for Unlawful Digital Asset Promotion

The FCA’s legal action targets HTX for operating without proper authorization to promote digital asset services.

HTX, formerly Huobi, was warned in 2023 for illegal financial promotions under its previous name.

The FCA is committed to consumer protection and tightening cryptocurrency regulations in the U.K.

The U.K.’s Financial Conduct Authority (FCA) has launched legal action against the cryptocurrency exchange HTX for unlawfully promoting digital asset services. The FCA claims the exchange operated without the necessary permissions to promote such services in the country. The case, filed in the High Court of London, marks a significant move by the FCA to enforce financial regulations in the cryptocurrency sector.

Previous Warnings from the FCA

The FCA’s legal action follows a series of warnings issued to HTX dating back to 2023. At the time, the FCA flagged the exchange, previously known as Huobi, for promoting digital asset services without the proper authorization

The regulator had explicitly warned consumers against engaging with the platform. It made it clear that HTX, under its former name, was not authorized to offer financial services in the U.K. HTX was acquired by Tron founder Justin Sun in 2022. Sun’s involvement has drawn attention, though the FCA’s recent statement did not mention him directly

The exchange, operating under Sun’s leadership, has continued to face scrutiny from regulators. The FCA’s legal proceedings against the exchange are a continuation of its efforts to address what it sees as illegal promotional practices in the cryptocurrency market.

Commitment to Consumer Protection

According to the FCA, the legal action is an indication of its interest in ensuring that it safeguards consumers by ensuring that the financial markets in the U.K. are upheld. A spokesperson claimed that some crypto firms have responded positively to the financial promotion rules in the country, as seen by the regulator.

However, where companies do not comply, the FCA has made it very clear that it will not hesitate to take enforcement measures. The case highlights how U.K. is currently working on tightening its regulations on cryptocurrency companies.

Financial authorities of the country have given even more attention to the fact that companies that popularize digital assets comply with the law. As interest in cryptocurrencies increases, the FCA has attempted to exercise more control over the industry in order to make sure that firms do not violate the law.