HTX Bows Out: Crypto Exchange Exits UK Market After FCA Settlement

Justin Sun's HTX, formerly known as Huobi Global S.A., has agreed to exit the United Kingdom, concluding the Financial Conduct Authority's (FCA) inaugural enforcement action against a cryptocurrency firm concerning financial promotions. The settlement, announced by the regulator, brings an end to a High Court proceeding initiated in October 2025, as reported by the Financial Times. Under the terms of the court undertakings, Huobi Global S.A., the Panama-registered entity behind the HTX brand, has committed to refraining from communicating financial promotions that violate UK law across its various platforms, including its website, applications, and social media channels.

The FCA confirmed that the exchange is no longer operational in Britain. UK customers are now unable to deposit funds, and new user registrations are prohibited. Existing customers have a 48-hour window to withdraw their assets before their accounts are permanently closed. The regulator presented this outcome as a stern warning to the broader crypto industry. Steve Smart, the FCA’s executive director of enforcement and market oversight, emphasized that firms based overseas are not beyond the jurisdiction of UK law. Smart explicitly stated, 'Crypto firms should be under no illusion: being based overseas does not put them beyond the reach of UK law. Our action means HTX is leaving the UK and can no longer target UK consumers. The message to other firms is clear: follow the rules or face the consequences.'

The FCA noted that HTX had shown a lack of substantive engagement throughout several rounds of discussions regarding the case, with settlement talks commencing in March and extending into June. In contrast, HTX has offered a differing perspective. According to Reuters, the exchange affirmed that it has implemented measures to comply with UK promotion regulations, stating, “We take local compliance requirements seriously and have proactively implemented measures to align with the UK’s financial promotion regulations.” The specifics of the settlement remain confidential, and the FCA has clarified that the agreement does not constitute an admission of liability or wrongdoing. Public reports have not indicated whether any monetary fine was imposed.

This development occurs amidst broader regulatory scrutiny of Huobi Global. In May, the UK sanctioned Huobi Global over its alleged support for Russia’s financial sector, explicitly listing HTX as an alternative name for the designated entity. Subsequently, in July, the European Union included Huobi Global in its 21st Russia sanctions package, prohibiting EU transactions with the exchange, though it stopped short of a full asset freeze. HTX, however, maintains that Huobi Global S.A. is distinct from its online exchange operations.

Further complicating its regulatory landscape, an incident in August saw Kraken clients temporarily locked out of their accounts following what was described as a 'dust attack.' This attack involved receiving minute amounts of cryptocurrency linked to sanctioned funds. Kraken reported that these attacks were designed to trigger compliance checks and disseminate sanctioned funds across various platforms, causing operational disruptions for thousands of users. Approximately 12,000 transfers were reportedly sent from a wallet identified as being linked to HTX. Kraken's compliance team promptly reinstated customer access while retaining the sanctioned funds and collaborating with authorities to prevent future occurrences of such attacks.