FCA Sues Crypto Exchange HTX Over Illegal Promotions, Targets Social Media Channels

The UK’s Financial Conduct Authority (FCA) has escalated its regulatory crackdown on unauthorised crypto promotions by filing legal proceedings against HTX, one of the world’s largest cryptocurrency exchanges, accusing it of persistently illegally marketing its products to British consumers. The action — brought in the High Court of Justice in London — centres on HTX’s promotion of crypto asset services without authorisation under the UK’s Financial Promotions (FinProm) Regime, which requires firms targeting UK users to comply with strict advertising and consumer protection standards.

Originally known as Huobi Global and incorporated in Panama, HTX is one of the biggest digital asset trading platforms by global volume but has never been authorised by the FCA to provide regulated services to UK consumers. After repeated warnings from the regulator were ignored, the FCA has now taken the rare step of seeking court enforcement, aiming to block the company’s access to key digital distribution channels — including social media platforms and app stores — in a bid to protect consumers and uphold the integrity of the UK financial marketplace.

This legal action marks a significant step in the UK’s efforts to regulate the often opaque and loosely-regulated crypto advertising landscape. The FCA’s move is the first of its kind against a crypto firm specifically for illegal promotions — underscoring regulators’ growing willingness to use legal mechanisms to rein in overseas platforms that flout UK rules.

Key Highlights

• Legal proceedings: The FCA commenced High Court action against HTX and associated persons, alleging unlawful financial promotions to UK consumers.
• Targeting digital channels: The regulator has asked major social media companies to block HTX accounts and requested Google and Apple remove HTX apps from UK store listings.
• Opaque structure: FCA criticised HTX’s lack of transparency and its failure to engage with regulatory outreach.
• First enforcement under FinProm: This is the first FCA enforcement action against a crypto platform for illicit marketing under the Financial Promotions Regime that came into force in October 2023.
• Consumer risk: HTX remains on the FCA’s Warning List, with UK consumers advised that they would not be protected by the Financial Ombudsman Service if things go wrong.

Background: The Financial Promotions Regime and Crypto Advertising in the UK

The UK’s Financial Promotions (FinProm) Regime was introduced in October 2023 to tighten rules around how financial products — including cryptocurrency and digital asset services — are marketed to consumers. Under this regime, any promotional material aimed at UK consumers must be issued or approved by an FCA-authorised entity, with clear, fair and not misleading messaging. Breaching these rules can amount to a criminal offence.

Before the regime took effect, many overseas crypto platforms freely marketed to UK audiences via social media, search ads, influencers, and other digital channels with minimal oversight. The new rules were designed to change that, giving regulators tools to curb “get rich quick” styling and aggressive marketing that can mislead less sophisticated investors.

Most firms adjusted their practices accordingly — either withdrawing UK targeting entirely or complying with required approval processes. HTX, however, remained flagged for ongoing promotional activities that the FCA deemed unlawful, leading to this broader enforcement push.

HTX’s Alleged Breaches and Regulatory Warnings

The FCA’s action stems from months of monitoring and warnings that went unheeded. HTX continued to publish financial promotions — including marketing slogans and tutorials — on its website and across global social media platforms such as TikTok, X (formerly Twitter), Facebook, Instagram and YouTube, targeting British consumers.

Examples cited in regulatory filings include promotional language such as:

• “Buy Bitcoin in a minute”
• “Borrow to scale up your trades and profits”
  These and similar calls to action for trading and borrowing were highlighted as examples of marketing that could mislead UK consumers and did not comply with the stringent promotional standards now required.

Despite some steps by HTX to prevent new UK users from registering accounts, existing British users were still able to access and engage with these promotions, a factor that deeply concerned the FCA and justified escalated legal action.

Enforcement: Legal Strategy and Targets

In its legal filings, the FCA named Huobi Global S.A. — HTX’s parent entity — along with “persons unknown” believed to be responsible for the exchange’s operations, promotional activities, and social media accounts targeting UK consumers. This reflects the challenge regulators face when dealing with firms with opaque corporate structures and no physical UK presence, which can make traditional enforcement difficult.

To overcome this, on 4 February 2026 the High Court granted the FCA permission to serve proceedings out of the jurisdiction and by alternative means, allowing the case to move forward despite HTX’s offshore incorporation in Panama.

Blocking Digital Channels: A New Enforcement Frontier

One of the most striking elements of the FCA’s action is its request to major digital platforms:

• Google Play and Apple App Store: Remove HTX’s applications from UK app listings.
• Social Media Companies: Block HTX’s official accounts from being accessible to UK IP addresses or audiences.

This novel approach seeks to limit the reach of unlawful promotions at the source, effectively cutting off HTX’s ability to market directly to British consumers through the channels where many investors first encounter offers — a tactic that goes beyond traditional fines and warnings.

While enforcement against overseas crypto firms has historically been hampered by jurisdictional limits, the FCA’s strategic use of blocking requests could signal a new model for digital financial regulation.

Consumer Protection and Market Integrity

The FCA has emphasised that its rules are designed to protect consumers and support sustainable market growth. Steve Smart, joint executive director of enforcement and market oversight at the FCA, noted that HTX’s conduct “stands in stark contrast to the majority of firms working to comply with the FCA’s regime.”

As part of the regulatory response:

• HTX was added to the FCA’s Warning List, advising UK consumers against engaging with the platform.
• Customers dealing with HTX are not eligible for protections such as the Financial Ombudsman Service if disputes arise.
• The FCA continues to monitor and, if necessary, take further action against other firms that ignore promotional compliance.

These measures aim to both deter unlawful conduct and educate investors about the risks of dealing with unregulated entities offering complex financial products.

Global Context: Crypto Marketing Regulation Trends

The FCA’s action against HTX is part of a broader global trend in which regulators are tightening controls over crypto advertising and promotions. Many jurisdictions now require clear disclosures, risk warnings, and explicit registration or approval before crypto asset services can be marketed to retail audiences.

Recent enforcement and advertising standards actions have targeted multiple exchanges and campaigns worldwide, involving platforms such as Coinbase, Kraken and others over claims that promotional materials oversimplified risks or misled consumers.

In the UK, the emphasis on regulating financial promotions is particularly strong, with Brexit-era reforms including the FinProm regime giving the FCA robust powers to pursue civil and criminal enforcement against non-compliant entities.

Potential Implications for HTX and the Crypto Industry

The legal proceedings could have significant implications:

• Market Access: If blocked from social channels and app stores in the UK, HTX could see reduced customer acquisition and visibility in a key market.
• Regulatory Precedent: Other regulators may follow suit, using similar enforcement against offshore crypto platforms targeting local investors.
• Compliance Pressure: Crypto exchanges may accelerate efforts to obtain local authorisations or partnerships with authorised entities to continue marketing legally.

#CryptoLaw#FinancialPromotions#HTXConsumerProtectionCryptoRegulationDigitalAssetsFCATheFinRateUKFinance