FCA and HTX in settlement talks 10 months after landmark UK crypto case

The UK's first court enforcement action against a crypto firm for illegal marketing may end in settlement, with London's High Court pausing proceedings until late August.

The UK Financial Conduct Authority and crypto exchange HTX are in settlement talks over allegations the exchange illegally promoted cryptoasset services to British customers, with London's High Court halting proceedings until late August to allow both sides to negotiate, court filings show.

"HTX remains dedicated to upholding high standards of compliance, transparency, and user protection and we will continue working collaboratively with the regulators to support the sustainable development of the cryptocurrency ecosystem," an HTX spokesperson said. The FCA and HTX both declined to comment on the status of talks.

The FCA launched civil proceedings against HTX — formerly known as Huobi Global — on October 21, 2025, marking the first time the regulator has taken a crypto firm to court over financial promotion violations. The court granted permission on February 4 to serve legal proceedings overseas, a step required by HTX's opaque corporate structure and offshore domicile. The case became public on February 10. Both sides exchanged emails in March and began three months of settlement talks, which were extended by another two months on June 25.

The outcome carries weight beyond HTX. The FCA's financial promotions regime, extended to cover cryptoassets in October 2023, has been enforced primarily through warning notices until now. A settlement could set a precedent for how the regulator handles unregistered offshore exchanges reaching UK consumers through social media.

The case against HTX

The FCA alleges HTX pushed promotions across TikTok, X, Facebook, Instagram, and YouTube without authorization, despite repeated warnings. The exchange was already on the FCA Warning List before legal action began. The regulator also requested that social media companies block HTX's promotional content for UK-based users and that Apple and Google remove the exchange's app from UK app stores.

Steve Smart, joint executive director of enforcement and market oversight at the FCA, said at the time the case was revealed: "This is the first time we've taken enforcement action against a crypto firm illegally marketing their products to UK consumers. We'll continue to act against firms who ignore our rules."

The lawsuit was filed against Panama-incorporated Huobi Global and "persons unknown" who operate and control the exchange. Chinese billionaire Justin Sun bought a controlling stake in the platform in 2022, though he has not been named in the FCA's formal filings.

HTX faced an additional complication in May 2026 when UK sanctions were enacted against the firm over alleged connections to Russia-related activities. The exchange has restricted new user registrations from the UK, though existing customers can still access the platform and its marketing materials.

Industry implications

The case has drawn attention from the broader crypto industry. Kraken's co-CEO publicly criticized the UK's financial promotion regime as overly restrictive in late 2025, citing the FCA's action against HTX as an example of the regulator's approach.

Crypto companies seeking British customers must register with the FCA and submit to anti-money laundering and financial crime checks. HTX and Huobi were added to the FCA's list of unauthorised companies in 2023 and 2024, a measure used to warn consumers against dealing with unregistered firms.

A settlement would likely include financial penalties and compliance commitments from HTX, though the terms have not been disclosed. The case demonstrates the FCA's willingness to pursue overseas entities even when jurisdiction is complicated, and it signals that unregistered exchanges targeting UK consumers through social media face escalating enforcement risk.

This article is for informational purposes only and does not constitute investment advice.