Major Crypto Exchange Quits UK in Watchdog Deal

HTX, a digital asset exchange advised by Justin Sun, has agreed to exit the United Kingdom following a High Court settlement with the Financial Conduct Authority (FCA).

The arrangement resolves a lawsuit that the regulator initiated in October 2025 over unlawful advertising. The legal action marked the FCA's first enforcement case against a foreign cryptocurrency firm regarding financial promotion rules. According to the regulatory filing, the platform received 4.6 million visits from Britain in 2023.

Under the new restrictions, the exchange is no longer active in Britain. The platform has blocked new user registrations and halted deposits from current UK consumers. Existing account holders were instructed via the company's website that they have 48 hours to withdraw their remaining assets before their accounts are permanently closed.

Sanctions Complicate Withdrawals

Retrieving those funds presents a significant hurdle for users, as the exchange is already treated as a sanctioned entity by the British government. On May 26, the UK sanctioned Huobi Global S.A., the Panama-registered company behind the HTX brand, over alleged support for Russia's financial sector.

The European Union subsequently named Huobi Global in its 21st Russia sanctions package in July. The EU measures barred transactions with the exchange but stopped short of issuing a full asset freeze. While HTX has stated that Huobi Global S.A. operates as an entity distinct from the online exchange, the UK Treasury's sanctions guidance provides no provisions for customer withdrawals.

The platform's ties to sanctioned funds previously surfaced in August when roughly 12,000 transfers were sent from an HTX-linked wallet. The transfers were part of a dust attack targeting Kraken clients, aiming to trigger compliance checks and spread sanctioned funds across trading platforms.

Regulatory Warnings

While the settlement terms remain confidential and involve no admission of wrongdoing or liability, the October 27 court order secures formal undertakings from Huobi Global S.A. The company promised not to knowingly communicate financial promotions that breach UK law across its website, social media channels, and applications.

"Crypto firms should be under no illusion: being based overseas does not put them beyond the reach of UK law," said Steve Smart, the FCA's executive director of enforcement and market oversight. "The message to other firms is clear: follow the rules or face the consequences."

Despite the FCA noting that the exchange repeatedly failed to engage over several rounds of talks, HTX claimed it had already moved to follow local regulations. Settlement talks originally began in March and were extended in June.

"We take local compliance requirements seriously and have proactively implemented measures to align with the UK’s financial promotion regulations," the company said in a statement.

Until Britain’s new cryptocurrency licensing regime begins in October 2027, the FCA has stated that the industry remains largely unregulated outside of money-laundering and advertising laws. While HTX is leaving the market, other platforms are preparing to enter; Binance currently plans a UK return and aims to secure a license before applications close in February 2027.