The UK's financial regulator, the Financial Conduct Authority (FCA), has filed a lawsuit against crypto exchange HTX (formerly Huobi) in London's High Court. The agency alleges that the exchange engaged in illegal crypto promotions aimed at UK investors and violated financial promotion rules.
FCA Strikes HTX
The FCA stated that the lawsuit is "part of its efforts to protect consumers and maintain the integrity of UK financial markets." The agency has previously issued warnings to UK consumers about HTX, stating that the platform operates without legal authorization.
HTX is known to be linked to Tron founder Justin Sun. Sun is among the exchange's advisors and is also known as one of the largest holders of TRUMP, the official meme coin associated with US President Donald Trump. However, the FCA did not disclose whether Sun is named as a defendant in the case file. HTX did not respond to questions about the case.
The FCA's lawsuit is the latest example of the UK's strict regulatory approach to the crypto market. In recent years, the country has been expanding its "financial promotion regime" to regulate the advertising and promotion of crypto platforms. The FCA has taken a particularly harsh stance against foreign-based exchanges providing unauthorized access to UK citizens.
Last year, Binance similarly came under the FCA's radar, and its promotional activities were halted. Experts believe that the FCA's new case against HTX demonstrates the UK's continued policy of "fighting unlicensed crypto services."
Financial regulators emphasize the high risk of crypto investments. In a public warning last year, the FCA emphasized that "the vast majority of crypto products are unregulated" and that investors' losses are not covered by the government.
Meanwhile, the UK government aims to establish a regulated framework for cryptocurrency in the long term, rather than banning it entirely. Official exchange-traded products (ETPs) have been approved, allowing crypto assets like Bitcoin and Ethereum to be traded. The government also plans to appoint a "digital markets ambassador" to support the crypto market. The HTX case is seen as a key test of how regulations will be implemented during this transition period. If the FCA wins, it could set a precedent for other platforms operating unlicensed cryptocurrency promotions in the UK market. As for the market, no significant impact has been observed so far. With Bitcoin hovering around $108,000, investors are awaiting how the FCA's decision will impact HTX's UK operations.
