Crypto exchange HTX included in EU's Russia sanctions

By Elizabeth Howcroft

PARIS, July 24 (Reuters) - Cryptocurrency exchange HTX was sanctioned by the European Union on Thursday as part of the bloc's latest effort to tighten pressure on Russia's financial system.

HTX, formerly known as Huobi and founded in China, is one of the world's largest crypto platforms. Hong Kong-based billionaire Justin Sun bought a controlling stake in the exchange in 2022.

It was included in a list of 18 companies providing crypto services which the EU said helped Russians evade sanctions. The list was made public on Friday. HTX did not immediately respond to a request for comment sent via email.

The EU's latest sanctions package against Russia over its war in Ukraine targets banks, cryptocurrency networks, oil traders, the shadow fleet and Russian energy revenues. 

The sanctions are the latest sign of countries cracking down on the use of crypto to move funds outside the mainstream financial system.

HTX was first sanctioned by the UK in May as part of a package focusing on what London called "shadow financial systems" underpinning Russia's war economy. The designation sent shockwaves through the crypto industry as analysts said it was the first sanctioning of such a big exchange. The EU's sanctioning of HTX does not amount to a full designation and does not include an asset freeze.

Following the UK sanction earlier this year, a spokesperson for HTX said: "Regulatory compliance remains our absolute top priority at HTX. We proactively monitor and strictly adhere to regulatory frameworks in all jurisdictions where we operate globally, including the UK."

HTX, which was founded in China in 2013, has referred to Sun as "advisor".

Sun was one of the most prominent backers of World Liberty Financial, the crypto venture co-founded by U.S. President Donald Trump and his sons, although the relationship has since soured.

(Reporting by Elizabeth Howcroft in Paris, additional reporting by Julia Payne in Brussels and Kirstin Ridley in London; Editing by Louise Heavens)