Bitcoin Magazine

Crypto Exchange HTX Agrees to Leave UK in Settlement With FCA 

Justin Sun’s HTX has agreed to leave the United Kingdom, closing the Financial Conduct Authority’s first enforcement case against a crypto firm over financial promotions. The regulator announced the settlement today, ending a High Court action that began in October 2025, according to Financial Times reporting. 

Under the court undertakings, Huobi Global S.A., the Panama-registered company behind the HTX brand, has promised not to communicate financial promotions that breach UK law across its website, apps and social media channels. 

The FCA says the exchange is no longer active in Britain. UK customers cannot deposit funds, and new users cannot register. Existing customers have 48 hours to withdraw assets before their accounts close.

The regulator framed the outcome as a warning. Steve Smart, the FCA’s executive director of enforcement and market oversight, said that being based overseas does not place a firm beyond the reach of UK law. 

Smart said that ‘Crypto firms should be under no illusion: being based overseas does not put them beyond the reach of UK law. Our action means HTX is leaving the UK and can no longer target UK consumers. The message to other firms is clear: follow the rules or face the consequences.’

The regulator said HTX had failed to really engage over several rounds of talks of the case. Settlement talks began in March and were extended in June

HTX settlement and background

HTX presents a different account. The exchange says it has put measures in place to align with UK promotion rules. 

“We take local compliance requirements seriously and have proactively implemented measures to align with the UK’s financial promotion regulations,” the company said in a statement, according to Reuters. 

The settlement terms remain confidential, and the FCA says the deal involves no admission of liability or wrongdoing. Public reporting does not say whether any fine was paid.

In May, the UK sanctioned Huobi Global over alleged support for Russia’s financial sector, listing HTX as another name for the designated entity. 

In July, the European Union named Huobi Global in its 21st Russia sanctions package and barred EU transactions with the exchange, stopping short of a full asset freeze. HTX says Huobi Global S.A. is distinct from the online exchange. 

Back in August, Kraken clients were briefly locked out of their accounts after receiving tiny amounts of cryptocurrency linked to sanctioned funds in what was known as a dust attack. Kraken said the attacks aimed to trigger compliance checks and spread sanctioned funds across platforms, causing operational disruptions for thousands of users. 

Around 12,000 transfers were reportedly sent from a wallet linked to HTX. Kraken’s compliance team quickly restored customer access while retaining the sanctioned funds and working with authorities to prevent further attacks.

This post Crypto Exchange HTX Agrees to Leave UK in Settlement With FCA  first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

UK Brings Crypto Under Full FCA Oversight for the First Time

The UK’s Financial Conduct Authority has opened applications for crypto firms to become authorized, bringing the sector under full regulation for the first time.

In a Wednesday announcement, the watchdog said companies can apply so that the crypto industry has “clarity and legitimacy.”

The UK is in the process of drafting a sweeping new crypto bill. The FCA finalized its regulatory framework for cryptoassets in June, and the regime is due to take effect in October 2027.  

“The UK’s new crypto regime will give consumers greater protections and firms a clear framework to operate in. Firms can now apply for authorisation and start preparing for regulation,” Dominic Cashman, director of authorisation at the FCA, said in a statement. 

The statement added that firms will have to demonstrate that they meet requirements covering consumer protection, customer-asset safeguarding, market integrity and financial resilience.

Britain is pushing ahead with digital asset legislation since last year recognizing bitcoin and other digital assets as property. The reform came from a 2023 recommendation by the Law Commission, which argued that digital assets did not fit neatly into existing legal categories.

Despite the FCA’s announcement, the UK currently is trailing behind Brussels and Washington with digital asset regulation. 

The EU’s Markets in Crypto-Assets regulation has applied to service providers since 30 December 2024. 

And the U.S. under President Donald Trump signed the GENIUS Act into law in July 2025, establishing a federal framework for dollar-backed tokens.

Despite lawmakers blocking landmark legislation the Clarity Act last month, U.S. regulators like the Securities and Exchange Commission have pushed ahead with rulemaking regardless. 

This post UK Brings Crypto Under Full FCA Oversight for the First Time first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.