FCA Forces HTX Crypto Exchange to Halt Unlawful UK Promotions

The Financial Conduct Authority (FCA) has secured High Court undertakings against global crypto exchange HTX, effectively forcing the platform to exit the UK market. This enforcement action underscores the regulator's commitment to policing financial promotion rules, signaling that offshore status provides no immunity for firms targeting British consumers with high-risk cryptoasset services.

What was announced

The legal action against HTX, formerly known as Huobi, began in October 2025 following the exchange's repeated failure to engage with the regulator regarding breaches of UK financial promotion rules. In response to the commencement of proceedings, HTX initiated steps to withdraw from the UK market. The FCA and Huobi Global S.A. have now reached a formal settlement in the case.

Under the terms of the High Court undertakings, HTX is prohibited from knowingly promoting cryptoasset services unlawfully to UK consumers. The exchange is no longer active in the United Kingdom; it has ceased accepting deposits from UK users and has blocked new sign-ups from the region. Furthermore, the firm is legally bound not to target, solicit, or actively seek engagement with consumers within the UK.

For existing UK-based users, the platform remains accessible only for the purpose of managing residual assets. HTX has published specific arrangements on its website detailing how these users can withdraw their remaining funds. The FCA has advised consumers to verify the regulatory status of any financial firm using the official FCA Firm Checker, reiterating that cryptoassets remain high-risk investments with limited protections for those who choose to trade them.

"Crypto firms should be under no illusion: being based overseas does not put them beyond the reach of UK law. Our action means HTX is leaving the UK and can no longer target UK consumers. The message to other firms is clear: follow the rules or face the consequences."

Steve Smart, executive director of enforcement and market oversight at the FCA.

The companies involved

The Financial Conduct Authority (FCA) serves as the conduct regulator for nearly 50,000 financial services firms and financial markets in the UK. It operates with significant enforcement powers to ensure markets function well and consumers are protected from harm. The regulator has increasingly focused its oversight on the digital asset sector, implementing strict financial promotion regimes that apply to any firm marketing to UK residents, regardless of where the company is headquartered.

HTX, which rebranded from Huobi in 2023, is one of the world’s largest cryptocurrency exchanges by trading volume. Originally founded in China before moving its operations offshore, the platform has historically sought to maintain a global footprint. However, its relationship with UK authorities has been fraught, culminating in this total withdrawal. The settlement involves Huobi Global S.A., the entity associated with the exchange's international operations. This exit marks a significant contraction for the exchange's European presence as it navigates a tightening global regulatory landscape for offshore crypto platforms.

What FF News has reported before

FF News has tracked the FCA’s intensifying scrutiny of the financial sector throughout 2026. The regulator recently Cracks Down on Unregulated Lenders Over Anti-Money Laundering Failures, restricting six firms over compliance concerns. This follows a major operational success where the FCA and NCA Strike Major Blow to Organised Insider Dealing Ring with Three Arrests.

Beyond enforcement, the regulator has been active in setting standards for emerging sectors. We covered how the FCA Demands Stricter Conflict Management as Private Markets Surge and reported on the FCA Outlines Vision for 'Agentic' Finance and Responsible AI Adoption in UK Services, highlighting the regulator's dual focus on innovation and consumer safety.

What this means

This settlement represents a "line in the sand" for the UK’s crypto promotion regime. By pursuing HTX through the High Court despite its offshore status, the FCA is demonstrating that it will not tolerate the "ignore and operate" strategy previously used by some global exchanges. This puts significant pressure on other offshore platforms that continue to serve UK residents without explicit regulatory approval or compliant marketing funnels. The industry must now grapple with the reality that the UK is becoming a "closed shop" for firms unwilling to meet high disclosure standards. It raises the question of whether other major jurisdictions will adopt similar extraterritorial enforcement tactics to curb unregulated crypto activity.