HTX, a crypto exchange linked to Justin Sun, has agreed to cease operations in the UK following a settlement with the Financial Conduct Authority. The FCA sued HTX in London's High Court for unlawfully promoting crypto asset services to UK consumers, alleging breaches of financial promotion rules. Under the confidential settlement, HTX will no longer target or solicit UK consumers and has implemented measures to align with UK regulations.
The agreement marks the FCA's first enforcement action against a crypto company under its financial promotion rules. HTX confirmed UK IP addresses can no longer register, and existing UK customers have 48 hours to withdraw assets before account closures. The FCA emphasized that basing crypto companies overseas does not exempt them from UK law.
The regulator's new crypto-asset regime will launch next year, requiring companies to register and comply with financial crime rules. HTX's parent company, Huobi Global, was added to the UK sanctions list earlier this year for supporting Russia's financial sector. Sun, known for his ties to the Trump family's digital asset ventures and a $100 million investment in Donald Trump's memecoin, previously settled a $10 million SEC case involving wash trading allegations.
Source: Financial Times Companies · Summarized by HeadlinesBriefing