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FCA Takes Legal Action Against HTX for Unauthorized Crypto Promotions in the UK

The UK Financial Conduct Authority (FCA) has initiated a lawsuit against HTX, alleging the exchange unlawfully promoted its crypto asset services to UK consumers.

HTX, previously known as Huobi, is not authorized to operate within the UK market, prompting regulatory scrutiny.

The FCA asserts that this action is part of its ongoing commitment to protecting consumers and maintaining market integrity amid increasing cryptocurrency popularity.

This lawsuit highlights the regulator's intensified enforcement against unapproved crypto marketing practices that violate British financial promotion rules.

UK consumers are advised to treat any communications from HTX cautiously while the case unfolds in the High Court.

The FCA's spokesperson noted that, while many firms are complying with financial promotion regulations, they will take action against those who do not.

In October 2023, HTX was added to the FCA’s warning list of unauthorized firms, a move signaling regulatory concerns about its operations.

Under UK law, firms that market crypto services to consumers must register with the FCA to comply with money laundering regulations.

The FCA has also accelerated approvals for crypto applications to align with favorable regulatory environments, making strides to adapt the market landscape.

As the legal proceedings move forward, it remains crucial for consumers to stay informed about their rights regarding unauthorized crypto services.