FCA Drags HTX To Court Over Illegal Crypto Promotions in The UK
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The UK’s financial regulators have taken crypto exchange HTX to court for the offense of illegal promotion of digital assets and services to consumers in Britain. This reflects the Financial Conduct Authority’s effort to bring global crypto activities under stricter supervision as the UK upgrades its regulations.
The Financial Authority confirmed it had sued HTX in London’s High Court for violating Britain’s financial regulations. The regulator said HTX has no operational rights in the country.
Unidentified HTX Associates Caught in FCA’s Legal Pursuit
The case also involved four individuals associated with HTX’s activities and marketing operations, though unidentified. The move is part of FCA’s effort to safeguard consumers and sustain trust in the country’s financial system.
HTX has long been linked to Tron founder Justin Sun. He serves as a consultant to the platform and is also the self-declared Prime Minister of Liberland, a self-proclaimed microstate.
The Financial Conduct Authority did not provide sufficient details about the court case but stated that it relates to a breach of UK regulations introduced two years ago. Regulators will ensure that crypto companies comply with strict requirements before contacting customers in the UK.
The legal move highlights the tightening regulations by cryptocurrency authorities over crypto enterprises targeting British consumers abroad. This also shows that firms linked to major institutions now face heightened scrutiny.
Presently, the outcome of the case in the High Court may affect compliance with foreign exchange regulations across several jurisdictions.
Authorities issued warnings to the organization months before the case. Two years earlier, authorities listed Huobi (now HTX) among unauthorized companies. All firms promoting crypto to UK consumers, wherever located, should be authorized and permitted to have their advertisements approved under the FCA’s new regulations.
UK Case Adds to Justin Sun’s Growing Legal Troubles
The new case intensifies Justin Sun’s ongoing legal troubles. Two years ago, he and affiliated companies were also sued in the U.S. for distributing unregistered securities and participating in fraudulent trading.
The Financial Conduct Authority has remarked that more enforcement cases may be on the way due to the strict supervision of crypto advertisements. This sector has also been greatly criticized for creating misleading promotions.
Traders are eager to learn if HTX will announce when the first court case is scheduled, and whether TRX’s decline will intensify or contribute further to legal pressure.
The UK High Court will specify civil actions once the defendant receives notice. Possible outcomes include injunctions and financial penalties when the court confirms breaches.
