HTX agrees to exit UK market in FCA settlement over misleading ads

HTX, the crypto exchange formerly known as Huobi UK, agreed on Tuesday to cease all operations in the United Kingdom as part of a confidential settlement with the Financial Conduct Authority, ending the regulator’s first formal case against the platform’s marketing practices. The agreement requires HTX to withdraw its services, hand over user data to the FCA and refrain from re‑entering the market without explicit permission.

The settlement follows a year‑long investigation that began after the FCA flagged HTX for allegedly breaching advertising rules that protect consumers from misleading or high‑risk financial promotions. In November 2023, the regulator issued a warning that HTX’s social‑media campaigns and sponsored influencer posts suggested guaranteed returns and downplayed the volatility of digital assets. The FCA also highlighted that the exchange had not secured the required authorisation to offer crypto‑related services in the UK, a breach that could expose retail investors to fraud and loss. The case marked the first time the FCA pursued a crypto firm for its marketing, signaling a shift toward stricter oversight of the sector.

In the settlement, HTX will surrender its UK customer database to the FCA, which will use the information to assess potential consumer harm and coordinate refunds where appropriate. The exchange will also pay an undisclosed financial penalty and commit to improving its compliance framework globally. While the UK settlement resolves the domestic dispute, HTX remains subject to sanctions imposed by the United Kingdom and the European Union over its ties to the Chinese parent company, which have limited its ability to process payments and access banking services across the region.

The departure of HTX underscores the growing regulatory pressure on crypto platforms operating in Europe. Analysts say the FCA’s actions could prompt other unregistered exchanges to seek authorisation or exit the market altogether. For UK investors, the FCA has urged them to review their holdings on HTX and consider moving assets to regulated providers. The regulator’s next steps include publishing a detailed report on the case, which may shape future guidance on crypto advertising and consumer protection.