NewsGlobalUK Regulator Takes Legal Action Against Crypto Exchange HTX for Unauthorized PromotionsUK Regulator Takes Legal Action Against Crypto Exchange HTX for Unauthorized Promotions
The UK's Financial Conduct Authority (FCA) has filed a lawsuit against cryptocurrency exchange HTX (formerly Huobi) for allegedly promoting crypto asset services to UK consumers without proper authorization. The civil proceedings, initiated in London's High Court, target HTX, its owners, operators, and promotion heads. HTX is not authorized to operate in Britain and appears on the FCA's warning list. This legal action follows new regulatory measures introduced in 2023 for crypto asset promotion and business registration in the UK.
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The UK's Financial Conduct Authority (FCA) has initiated legal proceedings against global cryptocurrency exchange HTX, formerly known as Huobi, for allegedly violating Britain's financial promotions regime. The lawsuit, filed in London's High Court, accuses HTX of unlawfully promoting crypto asset services to UK consumers without proper authorization.
Key Points of the FCA Lawsuit
- Target: HTX (formerly Huobi), a global crypto exchange
- Allegations: Unlawful promotion of crypto asset services in the UK
- Legal Venue: London's High Court
- Type of Action: Civil proceedings
HTX's Regulatory Status in the UK
| Aspect | Details |
|---|---|
| Authorization Status | Not authorized to operate in Britain |
| FCA Warning List | HTX appears on the list |
| Recommendation to Consumers | Avoid the company |
Lawsuit Specifics
The FCA's legal action targets multiple entities:
- Huobi Global (primary target)
- Four groups of unidentified individuals, including:
- Owners
- Operators
- Promotion heads
Background on HTX
- Founded: 2013
- Global Adviser: Justin Sun
- Sun's Other Investments: At least $75 million in World Liberty Financial (a Trump family crypto venture)
Regulatory Context
The FCA's actions come in the wake of new regulatory measures introduced in 2023:
- New authorization requirements for crypto asset promotion
- Enhanced registration processes for crypto-related businesses
This lawsuit underscores the increasing scrutiny of cryptocurrency exchanges by global financial regulators, particularly in established financial centers like the UK. It highlights the growing tension between the rapidly evolving crypto industry and traditional financial regulatory frameworks.
The case against HTX serves as a reminder to crypto businesses operating globally of the importance of complying with local financial regulations, especially when targeting consumers in highly regulated markets like the United Kingdom.
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