FCA in settlement talks with HTX over illegal cryptocurrency promotions targeting UK customers.
Regulation & Gov ·
Britain's Financial Conduct Authority and cryptocurrency exchange HTX are negotiating to resolve enforcement proceedings over unlawful marketing of crypto services to UK residents. Reuters reported from court filings that the High Court has suspended the case until late August to allow both parties time to reach agreement. The FCA initiated the case in October last year, marking the regulator's first enforcement action targeting a crypto exchange solely on marketing grounds, with formal claims published in February.
The regulator's case centers on evidence that UK-based users could access and trade on the platform despite its stated restrictions. An FCA investigator operating from a UK IP address successfully completed multiple transactions using a UK driving license for verification, and the exchange continued to operate in English, accept British pounds, and process UK photo identification. The particulars of claim name a Panama-incorporated entity alongside four categories of unnamed defendants, including anyone who assumes control of htx.com or the exchange's operations before October 31, 2028. HTX declined to respond to the FCA's formal warning letter issued in August 2025.
The settlement discussions occur as separate enforcement pressures mount. Both the UK and EU have levied sanctions against HTX and its stakeholders over alleged involvement in Russian sanctions circumvention, though the FCA's case addresses marketing violations exclusively under 2023 financial promotion rules. Neither HTX nor the FCA has publicly commented on the negotiation status.