UK regulator, crypto exchange HTX locked in settlement talks

By Kirstin Ridley and Elizabeth Howcroft

LONDON, Aug 13 (Reuters) - Britain's financial regulator and HTX, a cryptocurrency exchange under UK and European Union sanctions, are in talks to settle allegations ‌that the group is illegally promoting crypto services in the UK, court documents show.

The ‌Financial Conduct Authority last October sued HTX — formerly known as Huobi — one of the world's largest crypto platforms, in which Chinese ​billionaire Justin Sun bought a controlling stake in 2022.

But London's High Court has halted proceedings to give both sides two months until late August to settle their dispute, the filings show.

The lawsuit — the first FCA case against a crypto firm over marketing to UK consumers — highlights the challenges of trying to police global ‌crypto companies, which can have opaque ⁠corporate structures and ignore the regulator while reaching customers via the long arm of the internet.

The FCA and HTX declined to comment on the status of ⁠talks. Lawyers for HTX did not respond to requests for comment.

'DEDICATED TO UPHOLDING HIGH STANDARDS'

HTX also declined to comment on timelines, the details of regulatory discussions or legal proceedings.

A HTX spokesperson said: "HTX remains dedicated to upholding ​high standards ​of compliance, transparency, and user protection and we will ​continue working collaboratively with the regulators to ‌support the sustainable development of the cryptocurrency ecosystem."