Cryptocurrency exchange HTX, controlled by Justin Sun, has officially exited the United Kingdom following a High Court settlement with the Financial Conduct Authority (FCA). The agreement resolves a lawsuit initiated in October 2025 regarding unauthorized financial promotions directed at British retail investors.
Settlement Terms and Regulatory Action
Under the terms of an October 27 court order, HTX—formerly operating as Huobi—agreed to cease knowingly marketing crypto services to consumers in the UK. Existing UK account holders can no longer deposit new funds, and new user registrations have been completely halted.
The FCA originally filed suit in October 2025, representing its first High Court action against an offshore cryptocurrency exchange over illegal advertising. Court documents highlighted that HTX recorded 4.6 million UK site visits in 2023 alone. Steve Smart, the FCA's executive director of enforcement and market oversight, emphasized the regulator's stance:
"Crypto firms should be under no illusion: being based overseas does not put them beyond the reach of UK law."
While the detailed terms of the agreement remain confidential, the settlement involves no admission of wrongdoing by HTX. In an official statement, the exchange asserted that it takes compliance requirements seriously and proactively adjusted its practices to align with British rules.
Sanctions Conflict Creates Withdrawal Obstacles
Although the FCA advised remaining British customers to withdraw their funds via the HTX website, users face a significant legal barrier due to government sanctions. On May 26, the British government designated Huobi Global S.A., the Panama-registered entity behind HTX, over alleged financial ties to Russia. This regulatory pressure reflects tightening European crypto compliance standards.
The UK Treasury's Office of Financial Sanctions Implementation confirmed that the sanctions apply directly to the exchange itself. However, official guidance has provided no clear framework or specific permissions for retail customers seeking to recover trapped balances, leaving individual accounts frozen while awaiting explicit sanctions clearance.
Key Takeaways
- HTX reached an October 27 High Court deal with the FCA to stop all marketing and operations in the UK.
- UK users recorded 4.6 million visits to HTX in 2023, leading to the initial lawsuit in October 2025.
- Huobi Global S.A. was sanctioned on May 26 over alleged links to Russia, complicating account withdrawals.
- Britain's comprehensive crypto licensing framework begins in October 2027, with application windows closing in February 2027.
Why It Matters
This settlement highlights the growing legal friction between offshore crypto exchanges and domestic regulators intent on enforcing strict marketing and sanctions compliance. For UK users, the lack of tailored sanctions exemptions leaves customer funds in operational limbo, illustrating how regulatory enforcement against entities designated over Russian financial ties can inadvertently entrap retail capital. As the UK prepares for its official crypto licensing regime in October 2027, unlicenced offshore platforms will find it increasingly impossible to access British market liquidity.
