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UK's Financial Conduct Authority Takes Action Against HTX for Illegal Crypto Promotions

The Financial Conduct Authority (FCA) of the UK has intensified its scrutiny of the cryptocurrency exchange HTX, formerly known as Huobi, due to alleged illegal marketing practices aimed at British consumers.

Legal proceedings were initiated against HTX following accusations that the platform violated financial promotion rules by advertising unauthorized crypto services on various social media platforms.

These regulations, which took effect in October 2023, aim to protect consumers from misleading and unfair marketing in the crypto sector.

Despite prior warnings from the FCA, HTX continued its promotional activities, leading the regulator to classify its corporate structure as nontransparent and unresponsive to inquiries.

As a precautionary measure, HTX has restricted new account registrations for UK users, but existing customers still have access to potentially illegal promotions.

In light of these developments, the FCA has requested major social media platforms to block HTX accounts and asked Google and Apple to remove its apps from UK app stores.

This enforcement action, the first of its kind taken by the FCA against a crypto firm, underscores the agency's commitment to maintaining a regulated and competitive market.

According to FCA officials, HTX's actions sharply contrast those of other firms attempting to comply with UK regulations.

HTX remains on the FCA's Warning List, meaning customers engaging with the exchange do not receive the standard protections afforded to users of regulated firms.

These actions reflect the increasing challenges faced by regulators in overseeing the dynamic and often opaque world of cryptocurrencies.