UK FCA "Baring Its Teeth" In Enforcement Action Againts HTX Crypto Exchange, Formerly Huobi

HTX, formerly Huobi, was a prominent crypto exchange that Justin Sun took control of in 2022. In 2023, a series of events caused Huobi to rebrand as HTX.

More recently, HTX has faced sanctions allegations over activity in Russia. In May, the Financial Conduct Authority (FCA ) designated Huobi Global/HTX as providing financial services or resources to Russia-linked firms. Last month, the EU followed suit.

The FCA has also alleged illegal financial promotions. HTX is no longer authorized to operate in the UK.

In the US, Huobi/HTX has been banned for years.

Zumo founder and CEO Nick Jones says the FCA is “baring its teeth ” ahead of its authorization gateway, scheduled to launch next month, before its crypto regulatory regime goes into effect in October.

“By pursuing HTX for Financial Promotions breaches, the regulator is signaling the end of enforcement-free marketing for overseas crypto firms and forcing compliance across the sector. As the first-ever enforcement action of its kind against an offshore exchange, these High Court proceedings effectively demonstrate that the FCA is serious about shielding UK retail consumers from unapproved financial risk, and that its reach can extend to anyone marketing to UK citizens,” says Jones. “It also shows the industry is maturing. We’re seeing the end of offshore provision, start-up-style business processes, and unregulated business models. Financial institutions see authorization as a real game changer; one that will fully unlock their growing appetite for digital assets. As the industry steps onshore, providers will need access to critical partner infrastructure that can act as a bridge to the scaling UK market.”

The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 will bring a range of crypto activities into the FCA’s regulatory perimeter for the first time. Previously, oversight was limited mainly to anti-money laundering (AML) registration and financial promotions rules.