FCA Sues HTX Over Crypto Promotions

FCA Sues HTX for Illegal Crypto Promotions in the UK

• The UK Financial Conduct Authority (FCA) has filed a lawsuit against HTX, formerly known as Huobi, for illegal promotion of crypto products to UK consumers.
• This marks the first enforcement action under the UK’s new crypto promotions regime introduced in October 2023.
• HTX, associated with crypto entrepreneur Justin Sun, continued advertising on platforms like TikTok, X, YouTube, and Facebook despite FCA warnings.
• The FCA highlighted concerns about HTX’s lack of engagement and opaque ownership structure.
• The agency requested Apple, Google, and social media platforms to block HTX apps and accounts in the UK.
• HTX remains on the FCA’s public warning list; users are not protected by the UK Financial Ombudsman Service if the firm collapses.

The FCA’s lawsuit against HTX underscores regulatory action against illegal crypto promotions. The agency continues to monitor platforms like TikTok and YouTube for compliance with its new regime.