UK FCA and HTX reportedly in settlement talks over alleged illegal crypto promotions

The UK’s Financial Conduct Authority and crypto exchange HTX, formerly known as Huobi Global, are reportedly in settlement discussions over allegations that the exchange illegally promoted cryptoasset services to British customers without proper authorization.

The talks come after the FCA took the unprecedented step of launching civil proceedings against HTX in October 2025, making it the first time the regulator has hauled a crypto firm into court specifically for violating financial promotion rules.

How the case unfolded

The FCA initiated proceedings against HTX on October 21, 2025, though the public didn’t learn about it until February 10, 2026. Between those dates, the court granted permission on February 4 to serve legal proceedings overseas, a step that proved necessary because of HTX’s murky ownership structure and offshore domicile.

Steve Smart, a senior FCA official, confirmed at the time that this represented the regulator’s first enforcement action against a crypto firm for illegal marketing.

The core allegation is straightforward: HTX marketed its crypto services to UK customers without FCA authorization. The exchange was already sitting on the FCA Warning List before the legal action began.

According to the FCA, HTX pushed promotions across TikTok, X, Facebook, Instagram, and YouTube, essentially blanketing every major social media platform despite repeated warnings from the regulator. The FCA responded by requesting that social media companies block HTX’s promotional content and that app stores remove the exchange’s application.

Sanctions added another layer of complexity

HTX faced an additional blow in May 2026 when UK sanctions were enacted against the firm over alleged connections to Russia-related activities.

HTX did make some concessions during the proceedings. The exchange restricted new user registrations from the UK, though existing customers were still allowed to access both the platform and its marketing materials. There were also no guarantees offered to existing UK users about long-term service availability.

What settlement talks mean for crypto regulation

The broader industry is watching carefully. The UK’s financial promotions regime, which was extended to cover cryptoassets in October 2023, has been enforced primarily through warning notices until now.

The FCA has demonstrated it will pursue overseas entities even when jurisdiction is complicated, going so far as to get court permission for overseas service despite unclear corporate structures.

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