The FCA has launched a lawsuit against HTX for repeatedly breaching UK financial promotion rules for crypto assets. The company, formerly known as Huobi, will be required to take steps to restrict access for new users in the country.
The FCA has filed a civil lawsuit against HTX, formerly known as HUOBI, a company incorporated in Panama, including its owners, controllers, and operators, as well as the company’s website, mobile applications, and advertising.
The case was formally initiated on October 21, 2025, in the Chancery Division of the High Court, and on February 4, the court granted permission to serve notice outside the UK jurisdiction. The lawsuit was structured to cover future changes in control, including anyone who becomes the owner or controller of the exchange or its promotional channels until October 31, 2028.
This preemptive approach reflects the FCA’s intention to prevent corporate or governance changes from limiting the scope of the legal action. By extending the window of future control, the regulator seeks to ensure that the lawsuit remains effective even if the exchange’s operational management changes.
The omportance of setting a precedent for the FCA
According to the FCA, HTX continued to disseminate financial promotions targeting UK consumers despite having received prior warnings. The allegedly illegal promotions reportedly appeared both on the exchange’s website and on social media, and the regulator questioned the platform’s lack of transparency regarding its ultimate beneficial owners and operational leadership.
The FCA acknowledged that HTX took steps to restrict new UK customer registrations after the legal action began. However, it maintained that existing UK users continued to have access to promotions deemed illegal and that the company offered no assurances that these restrictions were permanent or fully effective.
From a regulatory perspective, the lawsuit falls under the application of the financial promotions regime for crypto assets that came into effect in October 2023. The FCA reiterated that promoting crypto assets without complying with applicable regulations can constitute a criminal offense, exposing companies to severe penalties and potential prosecution.
Looking ahead, the High Court’s permission to serve HTX overseas removes a key procedural hurdle and paves the way for substantive hearings. The FCA’s strategy aims for greater cross-border reach of UK marketing rules.
