FCA Cracks Down on HTX, Formerly Huobi, Over Russian Ties and Financial Promotions
HTX, the crypto exchange formerly known as Huobi, is facing significant enforcement action from the UK's Financial Conduct Authority (FCA). The FCA has alleged that HTX engaged in illegal financial promotions and provided services to Russia-linked firms. This comes after the EU designated Huobi Global/HTX as providing financial services or resources to Russian companies last month.
HTX is no longer authorized to operate in the UK, and this move by the FCA marks a significant shift in its approach to regulating crypto exchanges. Nick Jones, founder and CEO of Zumo, says that the FCA is 'baring its teeth' ahead of its authorization gateway launch next month.
The FCA's crackdown on HTX demonstrates its commitment to protecting UK retail consumers from unapproved financial risk. The regulator has been working towards a more comprehensive regulatory framework for crypto assets, which will come into effect in October with the implementation of the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026.
This new regime will bring a range of crypto activities within the FCA's regulatory perimeter for the first time. Previously, oversight was limited mainly to anti-money laundering registration and financial promotions rules.