UK Regulator Takes High Court Action Against HTX for Illegal Crypto Promotions

The United Kingdom’s Financial Conduct Authority (FCA) has filed High Court proceedings against Panama-based cryptocurrency exchange HTX, formerly known as Huobi Global, for repeatedly promoting crypto products to UK consumers in violation of financial advertising rules. The action follows prior warnings from the regulator about HTX’s noncompliance.

Illegal Promotions Across Multiple Platforms

The FCA stated that HTX continued publishing financial promotions on social media channels including TikTok, X, Facebook, Instagram, and YouTube, as well as on its website, despite being informed that such activity breaches the Financial Promotions (FinProm) Regime introduced in October 2023. The regulator obtained permission on February 4 to serve the case outside the UK and by alternative means, reflecting HTX’s Panama incorporation.

Consumer Protections and Enforcement Measures

The FCA has requested that social media platforms block HTX accounts for UK users and that Google Play and Apple App Store remove HTX applications in the UK. The company has also been added to the FCA’s Warning List, alerting consumers that they are not protected under UK law for disputes involving HTX.

FCA officials emphasized that enforcement action against HTX underscores the importance of compliance, stating that the firm’s conduct contrasts sharply with other crypto companies adhering to UK financial promotion rules.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.