The UK Financial Conduct Authority (FCA) has initiated legal proceedings against the cryptocurrency exchange HTX linked to Justin Sun for allegedly promoting services illegally to UK users.

This action is the unprecedented first enforcement case that came after HTX ignored warnings repeated since 2023. The regulatory authorities are now pushing to block HTX's social media accounts and app store access in the UK.

This exchange, previously known as **Huobi**, is facing criminal violations under regulations that allow only authorized institutions to conduct financial promotions. Despite the restrictions, HTX is reported to have continued advertising on TikTok, X (formerly Twitter), and its own website.

The documents submitted to the High Court in October 2025 targeted entities related to HTX and individuals whose actual controllers are unknown. The FCA secured the gained authority to deliver related documents to overseas entities on February 4, 2026.

What happened?

After the lawsuit was initiated, HTX restricted new user sign-ups in the UK, but existing users still have access to various promotions. The FCA pointed out that there is no guarantee these restrictive measures will continue.

Regulators assessed HTX's governance as 'opaque' and stated that they attempted to communicate but failed repeatedly. HTX is on the FCA's Warning List, so users will not receive protection under the financial ombudsman scheme or funds return even if issues arise.

The FCA requested social media companies to block access to HTX accounts within the UK. Additionally, they demanded that Apple and Google remove the HTX app from the UK App Store.

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Why it matters

This case reveals the enforcement gap that overseas cryptocurrency companies have exploited to easily evade local regulations. While many companies have adjusted to the new regulations since 2023, exceptional operators like HTX still remain.

Industry observers point out that complaints about misleading cryptocurrency advertisements are increasing. According to the FCA, over 1,000 unauthorized promotions have been removed since October 2023.

Kraken co-CEO **Arjun Sethi** criticized the current regulations as overly strict, mentioning the HTX case at the end of 2025. According to his claims, such regulations slow down transaction speeds for UK users and limit product choices compared to the US market.

The UK cryptocurrency promotion regulations that came into effect in October 2023 mandate risk warning messages and suitability assessments. Violations can lead to criminal penalties, and the aim is to reduce consumer losses in highly volatile assets.

The FCA's enforcement activities have recently increased prosecutions against individuals, and the speed of investigations has also accelerated. This action against HTX appears to be an extension of the trend targeting global operators that do not comply with regulations.

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