LONDON, Feb 10 - The Financial Conduct Authority (FCA) said on Tuesday it has requested that major app store operators and social media companies block access to the crypto exchange HTX for UK-based users.
The FCA, which filed a lawsuit against HTX in October alleging unlawful promotion of crypto asset services to consumers in the United Kingdom, said it had asked Alphabet's Google and Apple to remove HTX products from their UK app stores. The regulator also said it had asked social media companies to block HTX accounts from being visible to UK consumers.
In its statement the FCA said HTX repeatedly issued illegal crypto promotions to British consumers and that the exchange appears on a warning list maintained by the regulator for firms that may be promoting financial products without the necessary permission. The regulator said HTX did not identify the owners of the firm in the court filing.
"HTX operates an opaque organisational structure, hiding the identities of its owners and the operators of its website," the FCA said, and added that repeated attempts to engage with the company had been ignored. The regulator also stated that HTX had taken steps to stop new UK customers registering accounts, but that existing UK users could still log in and access unlawful financial promotions.
The exchange, which previously operated under the name Huobi and was founded in 2013, lists Chinese crypto entrepreneur Justin Sun as a global adviser. The FCA noted that Sun was not named in the lawsuit. HTX did not immediately respond to a request for comment.
Steve Smart, joint executive director of enforcement and market oversight at the FCA, said this action marks the first time the regulator has taken such enforcement steps against a crypto firm specifically for illegal marketing of products to UK consumers.
Summary of the regulator's actions and the firm's status:
- The FCA filed a lawsuit in October alleging unlawful promotion of crypto asset services by HTX.
- The regulator has asked Google and Apple to remove HTX products from UK app stores and requested that social media platforms block HTX accounts from UK users.
- HTX has been placed on a warning list by the FCA for potentially promoting financial products without permission.
- HTX has restricted new UK account registrations but existing UK users retain access to the platform and its promotions.
No further enforcement outcomes or legal rulings were provided in the regulator's announcement. The FCA reported that its outreach to HTX was unsuccessful and that the company's ownership and operational control remain obscured in the documentation referenced by the regulator.