Britain’s Financial Conduct Authority (FCA) and cryptocurrency exchange HTX are negotiating a settlement over claims that HTX unlawfully promoted crypto services to UK consumers, according to recent court filings. London’s High Court has agreed to pause enforcement proceedings until late August, granting time for both sides to reach an agreement.
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AAPLFCA enforcement action and court proceedings
The FCA launched these proceedings in the Chancery Division on October 21 last year, in what is recognized as the agency’s first enforcement case against a crypto exchange for marketing violations. The claim itself was published in February following the regulator’s move to clamp down on unauthorized financial promotions under section 21 of the Financial Services and Markets Act.
The regulator is seeking both an injunction and an official declaration that the defendants breached marketing restrictions. The defendants named in the claim include Huobi Global S.A., a Panama-based company incorporated in May 2023, and four broad categories of “persons unknown.” These categories extend to anyone currently owning or controlling htx.com, those defined within the user agreement as “HTX Operators,” social account administrators, and any individuals assuming those roles before October 31, 2028.
HTX’s platform terms broadly define its operators as all parties running the platform, without specifying individuals, and leave open the possibility for these identities to change over time. Notably, Justin Sun, who acquired a controlling interest in the exchange in 2022, has not been named in the proceedings.
Regulatory investigation and market restrictions
In presenting its case, the FCA detailed how a staff member, working from a UK IP address, was able to register, provide a UK driving license for identity verification, and then purchase crypto assets via HTX’s peer-to-peer service. The same individual also conducted two futures trades through the platform, illustrating ongoing access for UK residents.
The regulator cited several other access points for UK users, including the site’s English language interface, acceptance of GBP, and the ability to verify identity using a UK photo ID. The FCA emphasized that while HTX’s own terms restrict UK retail users solely from trading derivatives, these measures did not actually prevent futures trading. As a result, the FCA added HTX to its warning list in October 2023, coinciding with the implementation date of stricter crypto marketing rules.
Broader sanctions and ongoing negotiations
The current settlement discussions are taking place alongside separate international sanctions. Earlier this year, the UK imposed sanctions on HTX and Justin Sun for alleged involvement in facilitating Russian sanctions evasion. The European Union followed two months later by also naming the exchange as part of its own measures targeting Russian-linked activities. However, the FCA’s current action is strictly focused on regulatory breaches in advertising and does not address sanctions violations.
Neither the FCA nor HTX commented further on the ongoing negotiations. Despite this, an HTX spokesperson reiterated the exchange’s commitment to regulatory standards, stating:
HTX remains dedicated to upholding high standards of compliance, transparency, and user protection.
Web3 shifts and new asset ownership models
As regulatory attention on crypto marketing intensifies, traditional market structures are also undergoing significant changes. While established financial markets have long depended on brokers and intermediaries, a large-scale move from Wall Street to Web3 is underway. Investors increasingly use platforms such as 1stepSwap to hold shares of leading U.S. companies, gold, and silver directly in their crypto wallets. These platforms leverage tokenized Real-World Assets (RWAs) and intelligent price discovery algorithms to bypass middlemen and deliver quicker, more transparent transactions.
