FCA Cracks Down on HTX: Illegal Crypto Promotions Under Fire

The UK's Financial Conduct Authority has called for the removal of crypto exchange HTX's apps from UK app stores due to illegal promotions. The regulator has filed a lawsuit against HTX, citing issues of non-cooperation and lack of transparency in its organizational structure.

The Financial Conduct Authority (FCA) in the United Kingdom has intensified its efforts to curb illegal activities in the crypto market by targeting HTX, also known as Huobi. The regulator has urged social media companies and app stores to eliminate HTX from their UK offerings due to the exchange's unauthorized promotions of crypto services.

This move marks the FCA's first enforcement action against a cryptocurrency firm for unlawful marketing practices in the UK. HTX has been accused of using platforms like TikTok, X, and Facebook to promote its services despite being listed as an unauthorized firm. Examples include promotion of trading tutorials and crypto loans.

The FCA has highlighted HTX's opaque structure and lack of cooperation in responding to regulatory warnings. A lawsuit has been filed in the London High Court against the Panama-based Huobi Global and unspecified individuals, underscoring the challenges of regulating international crypto entities with no physical presence in the UK.

(With inputs from agencies.)