UK Files Lawsuit Against an Exchange for Illegal Crypto Advertising
Cryptocurrency oversight in the UK has entered a new phase. The country's financial regulator, the Financial Conduct Authority (FCA), announced it has initiated legal proceedings against the global cryptocurrency exchange HTX. The FCA alleges that HTX promoted its cryptocurrency services to British users in violation of existing financial advertising rules, thus engaging in illegal marketing activities.
According to the FCA's statement, the legal proceedings were initiated in October 2025 in the Chancery Division of the High Court of England. The regulator also stated that it recently obtained permission from the court to serve the case outside the UK through alternative channels. This is primarily because HTX is incorporated in Panama and its corporate structure operates outside the UK. HTX was previously known as Huobi Global and had a large global user base.
FCA'a warning to HTX
This legal step was taken under the Financial Promotions (FinProm) regime, which came into effect in October 2023 and imposes strict rules on how cryptocurrency companies can advertise to British consumers. The regulation in question mandates that cryptocurrency advertisements must be “fair, transparent, and not misleading.” The FCA emphasizes that promoting cryptocurrencies through social media or websites without adhering to these rules constitutes a clear criminal offense. The regulator also noted that this is not the first time HTX has been warned on this matter. According to the FCA, the exchange had previously been warned for illegal advertising targeting users in the United Kingdom. Despite this, HTX continued its promotional activities on popular platforms such as TikTok, X, Facebook, Instagram, and YouTube. The FCA argues that this constitutes a deliberate violation of the rules. The FCA's assessment also highlighted a lack of transparency regarding HTX's corporate structure. According to the regulator, the company does not clearly share basic information such as its ownership structure and who manages its website. Furthermore, it is stated that the company has gone unanswered for extended periods in response to the FCA's communication attempts. Although HTX has blocked new UK users from registering following the legal proceedings, existing users are reportedly still able to access the platform and encounter what the regulator has deemed “illegal” advertising. Steve Smart, Co-Director of Enforcement and Market Surveillance at the FCA, stated that the aim of the regulations is to create a sustainable and competitive crypto market in the UK. Smart said, “Consumers need access to accurate information to make informed decisions about high-risk assets. HTX’s stance is in stark contrast to the vast majority of firms trying to comply with the regulations.” This case is notable as it marks the first enforcement action initiated by the FCA against a company illegally marketing crypto to British consumers. Additionally, the FCA has requested that social media companies block HTX accounts from being visible in the UK. It has also requested the removal of HTX applications from Google Play and the Apple App Store in the UK. The agency states that these steps are aimed at protecting local investors. HTX has also been added to the FCA’s official Warning List. Users who trade with firms on this list are not eligible for consumer protection mechanisms in the United Kingdom. The FCA points out that investors who trade with such unauthorized platforms have a very low chance of recovering their money if the company ceases operations.
