TL;DR
- The FCA and HTX are discussing a settlement over allegations that the exchange unlawfully promoted crypto services to UK consumers, with proceedings paused until late August.
- The regulator says an employee used a UK IP address, British driving license and HTX’s peer-to-peer and futures services to demonstrate accessibility.
- The FCA seeks an injunction and declaration of breach, while HTX and the regulator declined to comment on ongoing negotiations publicly directly.
Britain’s Financial Conduct Authority and crypto exchange HTX are discussing a possible settlement over allegations that the platform unlawfully promoted digital asset services to UK consumers. London’s High Court has paused proceedings until late August, giving both sides time to negotiate. The unusual twist is that a landmark enforcement case may end through negotiation before the court fully tests the regulator’s crypto-promotion powers. The FCA wants an injunction and a declaration that the defendants breached section 21 of the Financial Services and Markets Act, which restricts unauthorized financial promotions.
Settlement talks test the reach of Britain’s crypto marketing rules
The FCA began proceedings in the Chancery Division on October 21 last year, describing the action as the first of its kind against a crypto exchange over marketing. The parties exchanged emails in March, entered three months of settlement discussions and extended negotiations for another two months on June 25. That timeline shows the dispute has shifted from straightforward enforcement toward a prolonged attempt to find acceptable terms. The regulator’s claim names Panama-incorporated Huobi Global S.A. alongside four categories of unidentified parties covering those who own or control htx.com, operate the platform, manage its social accounts or assume those roles before October 31, 2028.
The FCA’s case describes how it tested whether UK customers could continue using HTX. An agency employee connected from a UK IP address, verified identity using a British driving license, bought crypto through the platform’s peer-to-peer service and executed futures trades on two pairs. The regulator’s evidence focuses on practical accessibility rather than merely what the exchange’s written restrictions claimed to prohibit. The FCA also cited HTX operating in English, accepting pounds sterling and UK photo identification, while its terms barred British retail users from derivatives but allegedly did not stop the test user from trading futures.
HTX was placed on the FCA’s warning list in October 2023, when the UK’s financial-promotion rules for crypto took effect, and the regulator says the exchange did not answer an August 2025 letter before action. The settlement discussions therefore sit against longer regulatory concern rather than a sudden disagreement. Separate UK and European sanctions relate to alleged Russia-linked activity and are distinct from this marketing case. Both HTX and the FCA declined to comment on talks, while HTX said it remains committed to compliance, transparency and user protection.
