The UK’s financial watchdog has taken legal action against cryptocurrency exchange HTX, accusing the platform of illegally promoting crypto services to UK consumers despite prior regulatory warnings.
The Financial Conduct Authority (FCA) confirmed it launched proceedings in the High Court against HTX and several associated individuals, alleging repeated breaches of the UK’s crypto advertising rules. HTX, formerly known as Huobi Global, is incorporated in Panama, which prompted the court to allow the case to be served outside the UK and through alternative methods.
FCA Accuses HTX of Breaching UK Crypto Promotion Rules
According to the FCA, the legal action falls under the Financial Promotions (FinProm) Regime, which came into force in October 2023. The rules were introduced to tighten oversight of how crypto firms advertise to UK consumers, especially on digital and social media platforms.
The regulator stated that HTX continued to publish unauthorized financial promotions on its website and across major social platforms including TikTok, X (formerly Twitter), Facebook, Instagram, and YouTube, even after receiving formal warnings.
The FCA emphasized that promoting crypto products to UK users without proper authorization is a criminal offense, designed to protect consumers from misleading or unfair advertising practices.
First FCA Enforcement Case Against a Crypto Firm for Illegal Marketing
Steve Smart, the FCA’s joint executive director of enforcement and market oversight, said the action against HTX marks the first enforcement case brought by the regulator against a crypto firm for illegally marketing its services to UK consumers.
He noted that while most crypto firms are attempting to comply with the new regime, HTX’s conduct stood out as a clear violation. The FCA reiterated that it will continue taking action against companies that ignore the rules.
In addition to the court case, the regulator has asked social media platforms to block HTX’s accounts for UK users and requested the removal of HTX apps from the Google Play Store and Apple App Store in the UK. HTX has also been added to the FCA’s Warning List, alerting consumers that they are not protected by UK financial regulations if issues arise.
