FCA Moves Against HTX in London Over Illegal Crypto Promotions – Warning to Other Exchanges

Core Viewpoint - The UK's Financial Conduct Authority (FCA) has initiated a lawsuit against HTX, formerly known as Huobi, for unlawfully promoting cryptoasset services to UK consumers without proper authorization [1][2]. Regulatory Actions - The FCA's lawsuit represents a significant civil action against a major global exchange, emphasizing its commitment to consumer protection and the integrity of UK financial markets [1][2]. - HTX is accused of breaching the UK's financial promotions regime by targeting UK users without the necessary authorization or registration [2][4]. - The FCA has previously issued multiple consumer alerts regarding HTX's unauthorized operations in the UK [4]. Legal Framework - Under the UK's Financial Services and Markets Act (FSMA), firms must not promote investment activities unless authorized by a licensed entity, applicable to both domestic and foreign companies influencing UK consumers [6]. - Violating this regulation can lead to severe penalties, including up to two years in prison and unlimited fines [6]. Industry Implications - Regulated institutions that collaborate with unregistered crypto entities may face enforcement actions, compliance issues, and reputational damage [7].