The UK FCA Drags HTX to High Court in Its First-Ever Crypto Promotions Enforcement Action

The FCA Fires Its First Shot at a Crypto Exchange

The United Kingdom's Financial Conduct Authority has taken an unprecedented step in crypto enforcement. On February 10, 2026, the regulator revealed it has launched High Court proceedings against HTX, the global cryptocurrency exchange formerly known as Huobi, for systematically violating UK financial promotions rules.

This is not a warning letter. It is not a fine. It is the FCA's first-ever court enforcement action against a crypto firm for illegally marketing its services to British consumers, and it signals a decisive escalation in how one of the world's most influential financial regulators intends to police the digital asset industry.

The proceedings were originally filed in the Chancery Division of the High Court back in October 2025. The FCA disclosed that it has since received permission to serve the case outside the UK and by alternative means, a necessary step given that HTX is incorporated in Panama and operates with what the regulator described as "an opaque organisational structure, hiding the identities of its owners."

What HTX Actually Did

The core allegation is straightforward: HTX published financial promotions targeting UK consumers without complying with the FCA's cryptoasset financial promotions regime, which came into force in October 2023. Under that regime, every firm marketing crypto services to UK consumers, regardless of where the firm is headquartered, must either be FCA-authorized, registered, or have its promotions approved by an authorized firm.

HTX did none of these things.

According to the FCA, the exchange ran promotional content across its own website and on six major social media platforms: TikTok, X (formerly Twitter), Facebook, Instagram, YouTube, and its own channels. The regulator said it made repeated attempts to engage with HTX directly, all of which were ignored.

Steve Smart, the FCA's joint executive director of enforcement and market oversight, stated: "HTX's conduct stands in stark contrast to the majority of firms working to comply with the FCA's regime."

The FCA has also taken collateral action. It requested that social media companies block HTX's accounts from being visible to UK-based users and asked both Apple and Google to remove HTX's mobile applications from their UK app stores. HTX was added to the FCA's official Warning List, which alerts consumers that they have no access to the Financial Ombudsman Service or the Financial Services Compensation Scheme if something goes wrong.

The Justin Sun Shadow

HTX carries complicated ownership baggage. The exchange was founded in 2013 as Huobi by Leon Li. In 2022, Li reportedly sold his entire stake to an investment entity linked to Justin Sun, the founder of the Tron blockchain. Sun officially holds the title of "global adviser" to HTX, but multiple reports, legal filings, and even HTX's own past communications have described him in terms that suggest far more direct control.

Sun has denied outright ownership while acknowledging he holds tens of millions of HT tokens. The exchange rebranded from Huobi to HTX in September 2023, a name change that drew immediate comparisons to FTX. The FCA's description of HTX's "opaque organisational structure" seems to reference this ambiguity directly, though the regulator has not named Sun as a party in the proceedings.

For UK consumers, the ownership question matters. If the exchange were to fail or face insolvency, the lack of regulatory coverage means deposited funds could be unrecoverable. The FCA made this risk explicit in its announcement.

Why This Matters Beyond One Exchange

The financial promotions regime has been in effect since October 2023, but enforcement has been conspicuously slow. The Financial Times reported in January 2025 that the FCA had yet to penalize any firm for failing to remove illegal crypto adverts, even though roughly half of all banned promotions remained online after the regulator requested their removal.

The HTX case breaks that pattern. By going to the High Court rather than issuing a fine or a warning, the FCA is sending a message that it will pursue overseas operators who refuse to engage. The extraterritorial dimension is critical: most crypto exchanges that serve UK consumers are based outside the UK, often in jurisdictions like Panama, the Seychelles, or the British Virgin Islands.

This also comes at a pivotal moment for UK crypto regulation broadly. In December 2025, the government laid draft legislation under the Financial Services and Markets Act 2000 to bring cryptoasset activities more formally within the FCA's remit. Three new FCA consultation papers have been published covering admissions, disclosures, market abuse, and broader operational standards. The full regulatory framework is expected to be finalized by late 2026, with enforcement powers expanding from October 2027.

The HTX case is a preview of that enforcement posture.

What UK Crypto Users Should Watch

If you are a UK-based user of HTX, the immediate practical impact is limited but the risks are elevated. The FCA noted that existing UK users can still log in to the platform and continue to access the unlawful promotions. No asset freeze or trading halt has been imposed, at least not yet.

However, the FCA's request to delist HTX from UK app stores and block its social media presence creates a slow-motion squeeze. New user acquisition in the UK becomes nearly impossible. Existing users who lose app access through a device change may find it difficult to re-download. The Warning List designation means any dispute between a UK consumer and HTX falls entirely outside the UK's consumer protection framework.

For users of compliant UK-registered platforms, this enforcement action reinforces the value of choosing regulated providers. Exchanges like Coinbase and Kraken that have invested in regulatory compliance across jurisdictions, including the UK, stand to benefit from the competitive clearing effect.

Users concerned about the regulatory standing of their exchange should check the FCA's register and Warning List directly. If your exchange appears on the Warning List, your funds carry no government-backed protection in the event of loss.

The Compliance Divide Widens Across Crypto

The FCA's move against HTX is part of a broader global trend where regulators are drawing sharper lines between compliant and non-compliant crypto operators. In the United States, the SEC and CFTC have pursued enforcement actions against multiple exchanges. The EU's MiCA framework is rolling out in phases. Singapore, Japan, and Australia have all tightened their crypto licensing requirements.

For the crypto card and payments space specifically, this enforcement trend matters. Card issuers that rely on exchange infrastructure need those exchanges to maintain regulatory standing in every market they operate. A card provider linked to an exchange on the FCA's Warning List would face serious reputational and operational risk. Firms building self-custody spending solutions or working with regulated custodians may find themselves better positioned as compliance pressure intensifies globally.

The message from the FCA is clear: the era of consequence-free crypto promotion in the UK is over. HTX is simply the first name on what could become a much longer list.

FAQ

Is HTX banned in the UK? HTX is not formally banned, but the FCA has launched High Court proceedings against it for illegal financial promotions and has asked Apple, Google, and social media platforms to block HTX's presence for UK users.

Can UK users still access HTX? Yes, for now. The FCA noted that existing UK users can still log in. However, HTX has restricted new UK customer registrations, and app store removal could limit future access.

What is the UK's crypto financial promotions regime? Since October 2023, any firm promoting cryptoasset services to UK consumers must be FCA-authorized, registered, or have its promotions approved by an authorized firm. Violations are a criminal offense.

Is Justin Sun being sued by the FCA? The FCA has not named Justin Sun personally in the proceedings. The case is filed against "Huobi Global" and "persons unknown." Sun officially serves as a "global adviser" to HTX.

Will other exchanges face similar action? The FCA has signaled this is its first such enforcement action, not its last. Exchanges that ignore the financial promotions regime and refuse to engage with the regulator are likely next.

Overview

The UK FCA's High Court action against HTX marks a watershed for crypto enforcement in Britain. For the first time, the regulator has taken a crypto exchange to court over illegal financial promotions, moving beyond warnings and Warning List entries to active litigation. With draft legislation expanding the FCA's crypto powers expected to finalize in 2026 and full enforcement authority arriving by October 2027, HTX's case is the opening chapter of a much larger regulatory story. UK crypto users should verify their exchange's regulatory status and understand that funds held on non-compliant platforms carry no government protection.