HTX and the UK Financial Conduct Authority are in settlement discussions over claims that the crypto exchange unlawfully marketed its services to consumers in Britain. High Court proceedings have been put on hold until late August while the talks continue.

The FCA filed suit against HTX in October, alleging the platform targeted UK users without the required authorization. Neither the regulator nor the exchange has said what any settlement could include, and both declined to comment to Reuters.

Court pause follows months of contact

Court orders indicate the negotiations began after months in which the FCA tried to engage with HTX. The discussions first ran for three months and were later extended by another two months.

The case has now been paused to allow the parties to continue those talks, delaying further High Court proceedings until late August.

What the FCA alleges

The regulator’s case centers on whether HTX promoted crypto services to UK consumers without meeting local requirements. The FCA sued in October, arguing the exchange had targeted British users without authorization.

HTX, formerly known as Huobi, is one of the larger global crypto trading platforms. No settlement terms have been made public, so it remains unclear whether the discussions are aimed at a financial penalty, changes to business practices, or another outcome.

Rules behind the dispute

The case sits within the UK’s crypto financial promotion regime, which took effect in October 2023. Those rules limit how crypto products can be marketed to people in Britain and, where applicable, require FCA registration as well as anti-money laundering checks.

The enforcement action also reflects the UK’s broader effort to build a more formal regulatory structure for digital assets. According to the source report, updated full FCA authorization processes are due to take effect in October 2027.

Separate sanctions issues add pressure

HTX has also faced separate sanctions issues in the UK and the European Union tied to alleged Russia-linked activity. In May, Huobi Global S.A. was sanctioned for involvement with Russia, increasing the group’s exposure in Britain.

HTX disputed the scope of those sanctions. For now, the next confirmed development in the promotions case is procedural rather than substantive: the court pause runs until late August while settlement discussions continue.

Source: crypto.news