Crypto exchange HTX ordered to stop doing business in UK

By Kirstin Ridley and Elizabeth Howcroft

LONDON/PARIS, Oct 29 (Reuters) - Britain's financial regulator has secured a court-backed agreement with cryptocurrency exchange HTX that will bar it from knowingly promoting cryptoasset services unlawfully to UK customers, the watchdog said on Thursday.

The Financial Conduct Authority had in October 2025 sued HTX, formerly known as Huobi, over alleged illegal UK promotions. The company is one of the world's biggest crypto exchanges but does not have regulatory permission to operate in the UK.

Regulators and authorities around the world have for years warned that nascent crypto markets – which are generally less regulated than mainstream financial markets – present risks to investors. 

The UK High Court battle is the regulator's first case against a crypto firm over marketing to British customers. The lengthy process highlights the challenges of policing global crypto companies, which can have opaque corporate structures and ignore regulators while reaching customers via the internet.

PRESSURE BUILDING ON UNAUTHORISED CRYPTO FIRMS   

"Crypto firms should be under no illusion: being based overseas does not put them beyond the reach of UK law," said Steve Smart, FCA director of enforcement and market oversight.

"Our action means HTX is leaving the UK and can no longer target UK consumers. The message to other firms is clear: follow the rules or face the consequences."

The FCA said HTX, in which Chinese billionaire Justin Sun bought a controlling stake in 2022, took steps to exit Britain after legal proceedings were started and, following lengthy settlement talks, a deal was struck under which HTX will not target, solicit or actively seek to engage UK consumers.

HTX said it had remained fully committed to complying with "evolving regulatory frameworks" globally.

"We take local compliance requirements seriously and have proactively implemented measures to align with the UK's financial promotion regulations," the company said in a statement.

"HTX continues to focus on providing safe, transparent and compliant services to eligible users worldwide."

FCA 'PREPARED TO PURSUE OVERSEAS PLATFORMS'

Founded in China in 2013, HTX has also been sanctioned by the UK and the EU as part of packages targeting Russia's financial system.

The FCA's action against HTX is likely to be a template for future cases involving unauthorised companies targeting UK customers, said Oliver Pegden, partner at Clifford Chance.

"The outcome demonstrates that the FCA is prepared to pursue overseas platforms and secure effective restrictions on their UK-facing activities, notwithstanding opaque ownership or operating structures," he said.

Mayer Brown lawyer Marcel Hörauf and counsel Kam Dhillon said there was a wider crackdown on unauthorised crypto exchanges across Europe, with the EU's MiCA regulations fully in force.

"With MiCA's grace period now over in the EU, the pressure on unlicensed offshore firms is therefore building on both sides of the Channel," they said.

(Reporting by Kirstin Ridley and Elizabeth Howcroft; Editing by Tommy Reggiori Wilkes and David Holmes)