The UK Financial Conduct Authority and crypto exchange HTX, formerly known as Huobi, have opened settlement discussions in a High Court case accusing the platform of unlawfully promoting cryptocurrency services to British consumers. London’s High Court has suspended the proceedings until late August to give both sides time to reach an agreement, according to recent court filings.

The case marks the first enforcement action of its kind by the FCA against a cryptocurrency exchange for breaches of financial promotion rules. The regulator issued proceedings in the Chancery Division on 21 October 2025. The formal claim was published in February 2026 after the FCA obtained permission to serve papers internationally.

Details of the Regulatory Claim

The FCA is seeking an injunction and a declaration that the defendants breached section 21 of the Financial Services and Markets Act, which prohibits unauthorised financial promotions. The claim names Huobi Global S.A., a company incorporated in Panama in May 2023, together with four categories of “persons unknown.” These categories cover anyone who owns or controls the htx.com website, those defined as “HTX Operators” under the exchange’s user agreement, administrators of its social media accounts, and any individuals who assume those roles before 31 October 2028.

Justin Sun, the entrepreneur who acquired a controlling stake in the exchange in 2022, has not been named as a defendant. HTX’s platform terms describe its operators in broad terms as “all parties that run the Platform” without identifying specific individuals and allow that identity to change over time.

In building its case, the FCA described how one of its staff members, operating from a UK IP address, successfully registered on the platform, verified identity with a UK driving licence, purchased cryptoassets through the peer-to-peer service, and executed two futures trades. The regulator also pointed to the English-language interface, acceptance of pounds sterling, and willingness to accept UK photo identification as evidence that UK residents retained access.

Although HTX’s own terms restrict UK retail users from trading derivatives, the FCA stated that these restrictions did not prevent futures trading in practice. The exchange was added to the FCA’s list of unauthorised firms in October 2023, the same day the UK’s stricter crypto marketing rules took effect. Those rules require firms promoting cryptoassets to UK consumers to register with the regulator, meet anti-money-laundering standards, and include risk warnings and suitability checks in advertisements.

The FCA has alleged that HTX advertisements appeared on major platforms including X, Telegram, Facebook, TikTok, YouTube and LinkedIn. The regulator also reported that the exchange failed to respond to earlier contact attempts and maintained what it described as an opaque operational structure.

Progress of Settlement Discussions

Court records show the parties first exchanged emails in March. They then entered three months of negotiations, which were extended by a further two months on 25 June. Neither the FCA nor HTX has provided substantive comment on the status of the talks. Lawyers representing HTX did not respond to requests for comment.

HTX maintains that its products and services are not intended for UK users, a position stated in an undated notice on its website. An HTX spokesperson said the exchange “remains dedicated to upholding high standards of compliance, transparency, and user protection and we will continue working collaboratively with the regulators to support the sustainable development of the cryptocurrency ecosystem.”

Separate Sanctions and Broader Context

The marketing case proceeds independently of other measures. Earlier this year the UK imposed sanctions on HTX and Justin Sun over alleged involvement in facilitating Russian sanctions evasion. The European Union later named the exchange in its own Russia-related measures. The FCA action is confined to alleged breaches of advertising rules and does not address the sanctions issues.

The outcome of the current talks could influence how the FCA applies promotion restrictions to other offshore platforms that reach UK consumers through digital channels. The High Court pause remains in place until late August, after which proceedings may resume if no settlement is reached.