FCA enforcement against HTX over htx crypto promotions targeting UK consumers

The UK regulator is escalating its campaign against misleading htx crypto promotions as it clamps down on firms that ignore financial marketing rules.

FCA launches legal action against HTX

The Financial Conduct Authority (FCA) has begun legal proceedings against global crypto exchange HTX, formerly known as Huobi, for allegedly promoting cryptoasset services illegally to UK consumers. Since the marketing rules came into force in October 2023, firms offering crypto products in the UK must comply with stricter standards designed to protect the public.

Under these rules, firms promoting cryptoassets on websites or social media must ensure messages are fair, clear and not misleading. Moreover, advertising cryptoassets to UK users without following these requirements is a criminal offence. The FCA stresses that this framework is central to consumer protection in the rapidly expanding digital asset market.

Crypto advertising rules and HTX breaches

Since October 2023, the FCA has engaged extensively with crypto firms to help them adapt to the new regime, and the majority have, according to the regulator, reacted positively. However, HTX had already been the subject of a prior FCA warning for its illegal promotion of crypto services to UK-based customers.

Despite that warning, the exchange continued to publish financial promotions that breached the rules on its website and across several major social platforms, including TikTok, X, Facebook, Instagram and YouTube. This pattern of conduct has now triggered full enforcement action by the UK watchdog over the ongoing illegal cryptoasset promotions uk case.

Opaque structure and regulator concerns

The FCA highlighted that HTX operates what it describes as an opaque organisational structure. The exchange has allegedly obscured the identities of its owners and those who operate its website, limiting transparency for both regulators and customers. Moreover, repeated attempts by the FCA to contact and engage with HTX have been ignored.

Following the issue of legal proceedings, HTX has taken steps to block new UK customers from registering accounts on its platform. However, existing UK users can still log in and access what the FCA describes as unlawful financial promotions. The regulator also notes that HTX has provided no assurance that its recent changes will be permanent, leaving the FCA concerned about the ongoing risk of rule breaches.

FCA statement on the UK crypto market

Steve Smart, joint executive director of enforcement and market oversight at the FCA, underlined the regulator’s broader goals for the sector. He stated that the rules are designed to support a sustainable and competitive crypto market in the UK, ensuring consumers have the information they need to make informed decisions about high-risk assets.

Smart said that HTX’s conduct stands in stark contrast to most firms that are working to comply with the FCA’s regime. Furthermore, he stressed that this is the first time the FCA has taken enforcement action against a crypto firm for illegally marketing products to UK consumers. He added that the authority will continue to act against businesses that ignore the rules governing crypto advertising rules uk.

Restrictions on HTX apps and social media

To protect users, the FCA has asked social media platforms to block HTX’s accounts from being visible to UK-based consumers. It has also requested that HTX applications be removed from the Google Play store and the Apple app store in the UK. These measures aim to limit the reach of any ongoing unlawful promotions aimed at domestic users.

This intervention underscores the regulator’s growing focus on social media crypto ads, which often target retail investors with high-risk products. That said, the FCA continues to emphasise that consumers should exercise caution when dealing with crypto platforms, particularly when promotions appear on channels that may lack rigorous oversight.

HTX on the FCA Warning List

HTX is currently listed on the FCA’s official Warning List of unauthorised firms. Consumers who choose to deal with this exchange will not have access to the Financial Ombudsman Service if they later need to make a complaint. Moreover, they will not benefit from UK compensation schemes.

The FCA warns that consumers are unlikely to get their money back if HTX goes out of business. As a result, it urges the public to avoid this and similar unauthorised crypto firms warning where regulatory protections are absent. The regulator continues to underline that crypto investing remains high risk, and users should be prepared to lose all the money they commit.

How UK consumers can protect themselves

Individuals can use the FCA’s online tools to improve their due diligence before interacting with any exchange or platform. In particular, they can check fca warning list entries to see whether a firm is operating without authorisation or targeting UK users illegally with financial promotions.

Moreover, the FCA encourages people to visit its dedicated cryptoasset promotions page, which offers guidance on recognising risky offers and explains the standards firms must meet. These resources form a central part of broader consumer protection crypto uk efforts, aimed at reducing harm as digital assets and related services continue to expand.

In summary, the FCA’s case against HTX marks a significant escalation in UK oversight of crypto marketing. The action is intended both to curb unlawful promotions and to send a clear signal that firms must fully respect the rules governing htx crypto promotions if they wish to reach UK consumers.