FCA and Crypto Exchange HTX in Settlement Talks Over Alleged Rule-Breaches
Britain's Financial Conduct Authority (FCA) and cryptocurrency exchange HTX are locked in settlement talks over allegations that HTX has been illegally promoting crypto services in the UK. The dispute highlights the challenges of regulating global crypto companies, which can have opaque corporate structures and ignore regulators while reaching customers online.
The FCA sued HTX, formerly known as Huobi, last October, accusing it of breaching UK financial promotion rules that apply to cryptoassets since 2023. The regulator has been trying to protect consumers and uphold the integrity of the UK's financial markets.
HTX had initially ignored repeated attempts by the FCA to engage, but both sides have exchanged emails and begun three months of settlement talks, which were extended by another two months in June. HTX's products and services are not intended for UK users, according to a notice on its website.
A spokesperson for HTX said the company is 'dedicated to upholding high standards of compliance, transparency, and user protection' and will continue working with regulators to support the development of the crypto ecosystem.