The Financial Conduct Authority (FCA) has formally initiated legal proceedings against HTX, the crypto exchange previously known as Huobi, for unlawfully promoting its crypto services to consumers in the UK. This marks a significant milestone as it represents the FCA”s first enforcement action against a cryptocurrency firm for violating financial promotion regulations. The proceedings commenced in the High Court on October 21, 2025, following HTX”s continued advertising activities despite having received multiple warnings from the FCA.
The FCA implemented stringent financial promotion regulations in October 2023, necessitating that all crypto marketing materials include proper authorization and clear risk warnings. However, HTX has been non-compliant, persisting in its promotional activities across various major social media platforms. The FCA reports that HTX has disseminated unauthorized advertisements on platforms such as TikTok, X, Facebook, Instagram, and YouTube, in addition to promoting its services through its website and mobile applications. While many crypto firms have adhered to these new regulations, HTX has notably not complied.
HTX operates under a complex and opaque corporate structure that obscures details of its ownership. The proceedings have named Huobi Global S.A., a company incorporated in Panama, and have also targeted “persons unknown” who control the HTX website and applications. The FCA”s attempts to engage with HTX regarding compliance have gone unanswered, prompting Steve Smart, the FCA”s joint executive director of enforcement, to criticize the exchange”s actions. He remarked that HTX”s conduct starkly contrasts with firms that are compliant with the regulations.
On February 4, 2026, the High Court granted permission for the FCA to serve proceedings internationally, allowing the regulator to proceed despite HTX”s offshore status. The FCA has requested that social media platforms block HTX accounts accessible to UK users, and has asked Google and Apple to remove HTX”s apps from UK app stores. These measures are intended to safeguard British consumers from illegal promotions.
Since the initiation of legal proceedings, HTX has halted new customer registrations from the UK; however, existing users are still able to access their accounts and continue to see unauthorized financial promotions. The FCA has expressed concerns regarding ongoing regulatory breaches, noting that HTX has not provided assurances that these restrictions will be permanent. HTX remains on the FCA”s Warning List, indicating that UK consumers engaging with HTX are unable to utilize the Financial Ombudsman Service, which typically assists in resolving disputes with financial firms.
The FCA emphasizes that adherence to regulatory standards is crucial for fostering a sustainable cryptocurrency market. Consumers must receive accurate information to make informed decisions, as violations of these rules constitute a criminal offense. Smart reiterated the FCA”s commitment to taking action against firms that fail to comply with regulations, aiming to promote fair marketing practices within the crypto industry. Consumers engaging with unauthorized platforms like HTX face the risk of financial loss, with little expectation of recovering their funds should the company encounter financial difficulties.
This case specifically addresses illegal promotional activities rather than issues related to trading fraud or market manipulation. The core of the proceedings is focused on HTX”s inability to meet UK standards for financial advertising.
