FCA and crypto exchange HTX in settlement talks over illegal promotion

The British financial regulator FCA and crypto exchange HTX are at the negotiating table to resolve a lawsuit out of court. The FCA accuses HTX of illegally promoting crypto services to consumers in the United Kingdom, in breach of British financial promotion rules that have also applied to crypto companies since 2023.

In short:

• The FCA took HTX to court in October 2025 for breaches of British crypto promotion rules, the regulator’s first lawsuit against a crypto company over marketing to British consumers.
• A London court has temporarily stayed the case so both parties have until the end of August to reach an out-of-court settlement.
• HTX itself says its products and services are not intended for users in the UK, but the FCA believes the platform has repeatedly refused to cooperate with the investigation.

First lawsuit against crypto over marketing

The case began in October 2025 when the FCA filed a lawsuit against Huobi Global, the Panama-registered company behind HTX, and unknown parties that manage and control the exchange. According to CNA, this is the first time the British regulator has taken a crypto company to court for approaching British consumers with marketing for crypto services. The FCA says this is necessary to protect consumers and safeguard the integrity of the UK financial market.

In February this year the situation escalated further when the regulator formally accused HTX of breaching British financial promotion rules for crypto investments. The FCA indicated that HTX had ignored multiple attempts at contact and operates an opaque corporate structure. HTX itself posted a notice on its website saying its products and services are not intended for users in the UK.

Settlement talks after email contact in March

Despite the difficult relationship, the two parties did make contact by email in March, after which settlement talks got under way. Those talks initially ran for three months, but were extended by a further two months on 25 June, according to court documents. The London court has suspended the proceedings to make room for those talks, with the deadline set for the end of August.

Both the FCA and HTX refuse to comment on the state of play in the negotiations. The outcome of this case could be significant for other foreign crypto exchanges operating in the UK without a local licence. Earlier, other countries also tightened their rules for crypto activities, such as South Korea, which tightened rules for crypto transfers to foreign exchanges.