FCA Sues Justin Sun-Linked Crypto Exchange HTX for Unlawful Promotions
The UK’s financial watchdog has sued crypto exchange HTX, alleging it unlawfully promoted digital asset services to British
consumers. The move marks the latest step in the Financial
Conduct Authority’s effort to bring global crypto operators under tighter
oversight as the UK refines its digital asset rules.
Digital assets meet tradfi in London at the fmls25
Regulator Moves to Enforce Crypto Advertising Rules
The FCA confirmed it had filed civil proceedings in
London’s High Court against HTX, formerly known as Huobi, for violating
Britain’s financial promotions regime, Bloomberg reported. The regulator said HTX was not
authorized to operate in the country and appeared on its public warning list.
Founded in 2013, HTX lists Chinese entrepreneur Justin
Sun as its global adviser. Sun, a long-time figure in the crypto sector, has
drawn attention for his role in several ventures, including the Trump family’s
crypto initiative, World Liberty Financial. Reports suggest he has invested
around $75 million in the project’s tokens.
The UK’s finance watchdog sued several entities that form part of HTX, a digital asset exchange with links to Trump family cryptocurrency confidant Justin Sun https://t.co/oy4mwAoD8N
— Bloomberg (@business) October 22, 2025
The UK’s Push for a Regulated Crypto Market
The case names Huobi Global alongside four
unidentified individuals described as “persons unknown,” covering the
exchange’s owners, operators, and heads of promotions.
In 2023, the UK’s Financial Conduct Authority (FCA)
identified misleading advertisements as a major contributor to poor financial and investment decisions among consumers. In response, the regulator introduced
stricter measures to ensure that financial promotions are accurate and present
a fair balance between risk and reward for investors.
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Under this framework, only firms that can demonstrate
sufficient expertise in the products they promote will be allowed to approve
advertisements. Previously, any FCA-authorized firm could approve ads for
unregulated companies, a practice that often led to unclear or deceptive
promotions in retail trading.
The regulator reported this year that nearly 20,000 financial promotions were flagged last year, and subsequently withdrawn or
amended, almost double the number recorded the previous year.
According to the agency, misleading promotions were most
prevalent in sectors such as crypto assets, debt solutions, and claims
management services. Of these, 9,197 promotions from claims management
companies, primarily related to housing disrepair and motor finance claims
targeting vulnerable consumers, were taken down.
This article was written by Jared Kirui at www.financemagnates.com.
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