UK Watchdog Cracks Down On HTX In Bid To Stop Illegal Crypto Activity

The United Kingdom’s Financial Conduct Authority (FCA) has escalated its enforcement action against crypto exchange HTX, accusing the platform of illegally promoting crypto services to British consumers and seeking to restrict its presence across digital platforms in the country.

HTX Faces UK App Store Ban

In a statement released on Tuesday, the FCA said it has formally asked major social media companies and app store operators to block access to HTX in the UK. 

The regulator is seeking the removal of HTX’s applications from Google’s Play Store and Apple’s App Store for UK users, as well as the blocking of the exchange’s social media accounts for British audiences. 

The regulator alleged that HTX has repeatedly advertised “illegal crypto services” on popular social media platforms, including TikTok, X (previously Twitter), Facebook, Instagram, and YouTube. According to the FCA, these promotions breached UK financial rules governing how crypto products can be marketed to the public.

The FCA also alleged that HTX operates through an “opaque corporate structure” that conceals the identities of its owners and those responsible for running its website. The FCA also said that its repeated attempts to engage with the company have gone unanswered.

While HTX has taken some steps since the legal proceedings began—specifically by restricting new UK users from registering for accounts—the FCA said those measures do not go far enough. 

The FCA added that HTX has not provided any assurance that its restrictions on new users will be permanent, leaving concerns that breaches could continue.

FCA Signals Tougher Crypto Enforcement

Steve Smart, the FCA’s joint executive director of enforcement and market oversight, said the regulator’s rules are intended to support a stable and competitive crypto market while ensuring consumers can make informed decisions. 

He said HTX’s behavior sharply contrasts with that of most firms attempting to comply with the UK’s regulatory framework. Smart noted that this is the first time the FCA has taken enforcement action against a crypto firm for illegally marketing its products to UK consumers.

HTX is currently listed on the FCA’s Warning List, meaning consumers who engage with the platform are not eligible for protections such as access to the Financial Ombudsman Service.

Commenting on the case, Nick Barnard, a partner at law firm Corker Binning, said it highlights the difficulty of regulating the crypto industry from a single jurisdiction. 

He noted that the FCA’s options are limited when a company has no physical presence in the UK. However, he added that the regulator has likely concluded it must still demonstrate a firm stance against companies that openly flout UK rules.

Featured image from OpenArt, chart from TradingView.com