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UK FCA and HTX enter settlement talks over crypto marketing allegations
The FCA sued HTX in October, and a High Court order paused the case to allow two more months of settlement talks through late August.
Britain’s Financial Conduct Authority is in talks to settle allegations with HTX, a cryptocurrency exchange operating under UK and EU sanctions, according to court filings reviewed by Reuters.
The FCA last October sued HTX, formerly known as Huobi, over claims the firm was illegally promoting crypto services to consumers in the UK. The dispute was paused by London’s High Court, which set a two month deadline until late August for the parties to reach a settlement.
The lawsuit, described as the first FCA case against a crypto business over marketing to UK customers, highlights the difficulty regulators face when policing global exchanges with opaque corporate structures that can reach users online. Reuters notes the FCA accused HTX in February of breaching UK financial promotion rules that have applied to cryptoassets since 2023.
HTX said in an undated notice posted on its website that its products and services are not intended for UK users. The FCA also previously added HTX and Huobi to its list of unauthorized companies and urged social media platforms to remove HTX products from UK app stores and block HTX accounts for UK based users.