UK FCA sues HTX over illegal crypto promotions

The UK Financial Conduct Authority (FCA) has filed a lawsuit against crypto exchange HTX over illegally promoting crypto asset services to British consumers. According to the watchdog, the actions are a breach of the new financial advertising rules.

FCA said that it began proceedings against HTX and several related persons in the Chancery Division of the High Court in October 2025. 

According to an update published Tuesday, the regulator said it received permission on Wednesday to serve the case outside the UK and by alternative means. This was necessary because HTX (formerly known as Huobi Global) is incorporated in Panama.

The FCA adds HTX to its Warning List

The UK’s crypto financial promotions regime came into force in October 2023 and applies to both domestic and overseas firms that target UK consumers. Any crypto promotion must either be issued by an authorised firm or approved by one, and must meet detailed requirements on risk disclosures and presentation.

The FCA has said that most firms adjusted their marketing practices or withdrew from the UK following the introduction of the rules. In HTX’s case, the FCA has been monitoring its activities for several months. 

“HTX operates an opaque organisational structure, hiding the identities of its owners and the operators of its website,” the FCA said. Repeated attempts to engage with the company had been ignored, it added. 

As stated, the FCA had warned about HTX’s promotion of crypto services to UK consumers. “However, it has continued to publish financial promotions in breach of these rules on its website and on social media platforms, including TikTok, X, Facebook, Instagram and YouTube,” the authority said.

The FCA acknowledged that HTX has taken some steps to restrict new UK users from registering. However, it said existing UK customers can still log in and view promotions that the regulator considers unlawful. The FCA added that it has not received assurances that these changes are permanent, raising concerns about continued non-compliance.

The FCA has instructed social media companies to block HTX’s accounts in the UK. The regulator has asked for the removal of HTX’s apps from Google Play and the Apple Store within the UK. 

The FCA emphasized that firms promoting crypto services to UK consumers must adhere to rules that protect them from misleading or harmful marketing. Meanwhile, the regulator has put the company on its Warning List, notifying consumers that they are not protected by the UK government if they have a complaint against HTX.

Steve Smart, the FCA’s joint executive director of enforcement, stated, “HTX’s conduct stands in stark contrast to the majority of firms working to comply with the FCA’s regime. This is the first time we’ve taken enforcement action against a crypto firm illegally marketing their products to UK consumers.”

Beyond the UK, HTX’s regulatory retreat spans several important markets, reinforcing perceptions that the exchange is losing ground in key global jurisdictions. 

The platform has either restricted access or withdrawn services in major financial hubs, including the United States, mainland China, Hong Kong, Singapore, Turkey, Iran, North Korea, Syria, Sudan, Venezuela, and Cuba.

HTX launches USDe minting and redemption service 

In other news, HTX  launched its new USDe minting and redemption service. The HTX minting and redemption process for USDe uses Ethena Labs’ smart contracts. The service eliminates the need for spot order books or OTC liquidity, simplifying the minting and redemption process.

HTX also introduced a daily rewards program for users holding USDe in their spot accounts. Rewards will be paid weekly, allowing users to earn passive returns while maintaining dollar-denominated exposure.

The platform plans to add a USDe Flexible product to HTX Earn, with returns reaching up to 15% APY. HTX stated that the product will support seamless participation for users seeking steady yields with simple entry requirements.

A trading campaign now complements the launch and offers a 10,000 USDe reward pool through February 20. HTX framed the event as a way to encourage early engagement with the expanding synthetic dollar ecosystem. 

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