UK Watchdog, HTX Rush to Settle Crypto Marketing Case

The UK's top financial regulator and cryptocurrency exchange HTX are racing to settle a landmark lawsuit over allegations of illegally marketing its services to UK consumers.

The Financial Conduct Authority (FCA) launched its enforcement action in October last year, seeking an injunction and a declaration that the defendants breached section 21 of the Financial Services and Markets Act. The claim was published in February after the regulator secured permission to serve legal papers internationally.

Court filings show the FCA and HTX exchanged emails in March before entering three months of settlement negotiations. Those talks were extended by two months on June 25, underscoring the slow-moving nature of a case that marks the first time the regulator has sued a crypto firm over marketing violations.