HTX Agrees to Stop Targeting UK Consumers Following FCA…

HTX, the cryptocurrency exchange formerly known as Huobi, has agreed to stop targeting UK consumers after the Financial Conduct Authority secured High Court undertakings from its operating company, Huobi Global S.A. The settlement ends a year-long legal dispute over alleged breaches of Britain's financial promotion rules and removes the exchange from the UK market. The FCA announced on October 29 that HTX is no longer active in the country. UK consumers cannot make new deposits, new users cannot register, and the exchange has agreed not to target, solicit or actively seek to engage British customers. The settlement follows the FCA's legal action against HTX in October 2025, after the regulator repeatedly attempted to engage with the exchange over its marketing activities. The proceedings were publicly announced in February 2026.

What Do the High Court Undertakings Require?

The court order, issued by Deputy Master Holden on October 27, records a confidential settlement agreement dated October 16 between the FCA and Huobi Global S.A., a company incorporated in Panama. Under the undertakings, Huobi Global will not knowingly communicate, directly or indirectly, financial promotions that contravene Section 21 of the Financial Services and Markets Act 2000. The commitment also covers promotions communicated through officers, employees, agents or other intermediaries. The restrictions specifically extend to the HTX website, associated software applications and social media platforms, including X, Facebook, Instagram, Telegram, TikTok, YouTube, Discord, Medium and LinkedIn. The undertakings remain in force until October 21, 2031. The court has stayed further proceedings under the settlement terms, while allowing either party to return to court to enforce the agreement without starting a new claim. Importantly, the settlement does not constitute an admission of liability or wrongdoing by Huobi Global or any other party. The FCA has also not disclosed the financial or commercial terms of the agreement.

Investor Takeaway

The five-year court commitment gives the FCA an enforcement mechanism against unlawful promotions, extending its reach beyond the exchange's physical operating location.

Why Did the FCA Pursue an Overseas Exchange?

The dispute centered on HTX's continued promotion of cryptocurrency services to UK consumers despite repeated regulatory warnings. The FCA said the exchange had failed to engage with its attempts to address the alleged breaches and continued publishing promotions through its website and social media channels. The original proceedings, commenced on October 21, 2025, named Huobi Global S.A. alongside several categories of unidentified individuals allegedly connected to the exchange's ownership, operational control and promotional activities. The inclusion of these unidentified defendants reflected the FCA's attempt to address difficulties identifying the individuals responsible for operating the platform and controlling its marketing channels. However, the publicly disclosed undertakings were provided by Huobi Global S.A., the first defendant. The settlement should therefore not be interpreted as a judicial finding against every individual or unidentified party named in the original proceedings. Steve Smart, the FCA's executive director of enforcement and market oversight, said overseas firms could not avoid UK law simply by operating from another jurisdiction. He described HTX's departure as the outcome of the regulator's enforcement action and warned other firms to comply with the rules.

What Happens to Existing UK HTX Customers?

The exchange's withdrawal leaves existing British customers facing restrictions on their previous access to its services. While deposits have been disabled and new registrations are unavailable, the FCA has directed existing users to information published by HTX concerning service availability and arrangements for withdrawing residual assets. The regulator has not provided a specific withdrawal deadline or guaranteed the recovery of individual customer balances in its announcement. Customers therefore need to examine the exchange's published arrangements rather than assume that existing assets can be accessed through normal trading and withdrawal procedures. The settlement also does not establish that customer assets have been lost or that HTX is insolvent. Its immediate consequence concerns UK market access and financial promotion activity.

Investor Takeaway

Existing customers face a separate operational issue from the legal settlement: recovering residual assets depends on the withdrawal arrangements made available by HTX.

Can Overseas Crypto Exchanges Still Reach UK Customers?

The HTX case reinforces the distinction between operating internationally and legally marketing financial products to British consumers. The UK's crypto financial promotions regime, introduced in October 2023, applies to overseas businesses whose promotions target UK consumers. Firms can use permitted regulatory routes to communicate promotions, including obtaining approval from an appropriately authorised firm where required. The FCA's authorization of Archax as a Section 21 financial promotion approver provides an example of the compliance infrastructure available to firms seeking UK market access. Bitget's return to the UK market through an Archax approval arrangement illustrates an alternative to withdrawing from the jurisdiction entirely. The FCA's broader crypto regulatory framework is expected to expand in October 2027. Until then, financial promotions and anti-money laundering requirements remain important elements of the existing regime. For international exchanges, HTX's exit provides a concrete example of the commercial consequences of failing to establish an acceptable UK compliance arrangement. The next test will be whether other offshore platforms choose to withdraw, restrict their marketing or secure the necessary approvals to continue reaching British customers.