In brief – The FCA has settled its High Court case against HTX, securing undertakings that the exchange will not target or solicit UK consumers. – HTX has stopped taking deposits and new sign-ups from the UK, and existing UK users have 48 hours to withdraw their assets, the…
change said. – The case was the FCA’s first against a crypto firm under UK financial promotion rules, and the terms of the settlement are confidential. Crypto exchange HTX is leaving the UK after settling a lawsuit brought by the Financial Conduct Authority over illegal crypto promotions, the regulator said on Thursday
The FCA said it had secured undertakings in the High Court that HTX, formerly known as Huobi, will not knowingly promote crypto services unlawfully to UK consumers. Huobi Global S.A., the Panama-registered company named as the first defendant, has undertaken not to communicate financial promotions in breach of UK law across HTX’s website, apps and social media, according to the court order. HTX, which names Tron founder Justin Sun as a global adviser, is no longer active in the UK, the regulator said.
UK consumers can no longer make deposits, and new UK users cannot sign up. “Crypto firms should be under no illusion: being based overseas does not put them beyond the reach of UK law,” said Steve Smart, the FCA’s executive director of enforcement and market oversight. “The message to other firms is clear: follow the rules or face the consequences.” HTX said it had “proactively implemented measures to align with the UK’s financial promotion regulations,” the Financial Times reported. On its website, the exchange said existing UK customers are blocked from trading and have 48 hours to withdraw their assets before their accounts are closed. The terms of the settlement are confidential, and it does not amount to an admission of liability or wrongdoing, the FCA said.