The UK's Financial Conduct Authority (FCA) has taken a landmark step by initiating a lawsuit against the global cryptocurrency exchange HTX, previously known as Huobi, accusing the company of unlawfully promoting crypto asset services within the UK. HTX, which is linked to Chinese entrepreneur Justin Sun, has been targeted for breaching the country's stringent financial promotions regime designed to protect consumers and ensure the integrity of financial markets. The FCA filed civil proceedings in London's High Court, naming Huobi Global and four unnamed individuals as defendants, signaling the regulator’s firm stance on unauthorized crypto operations.

HTX, founded in 2013, has been a notable player in the crypto sector, often linked to prominent and sometimes controversial ventures. Justin Sun, who serves as the global adviser for HTX, is well-known for his involvement in various crypto initiatives, including World Liberty Financial and investment in the '$TRUMP' memecoin project, where he reportedly invested around $75 million in tokens. Despite these high-profile associations, HTX has found itself on the FCA’s warning list, which advises consumers to avoid dealing with the firm. The regulator's action follows previous warnings issued in 2023 and aligns with new FCA rules introduced that year requiring crypto firms to obtain authorization and register under anti-money laundering regulations before offering digital assets legally in the UK.

This legal action highlights the FCA’s commitment to tightening oversight of the increasingly complex and high-risk crypto market, a sector that has seen rapid growth alongside concerns about consumer protection and market manipulation. The lawsuit underscores the UK’s broader regulatory push to ensure that only authorized firms can operate within its jurisdiction, protecting retail investors from unregulated and potentially unsafe financial products. As of now, HTX has not publicly responded to the lawsuit, leaving its next steps uncertain.

Alongside this regulatory crackdown on crypto exchanges, the UK's financial and tech sectors are experiencing other significant developments. In telecommunications, major lenders NatWest and Lloyds have scaled back their financial support for alternative network providers, particularly those focused on fibre broadband infrastructure. These providers are grappling with economic headwinds such as high interest rates and lower-than-anticipated customer uptake, leading to a more cautious lending environment that could slow broadband expansion initiatives.

In the retail sector, Princes Group, a key player in the UK grocery supply chain, is proceeding with a major Initial Public Offering (IPO) on the London Stock Exchange, aiming to raise around £400 million ($537 million). This move is ambitious given the current sluggish market conditions for IPOs, reflecting a broader confidence in the sector’s resilience amidst economic uncertainty.

Further reinforcing the UK's regulatory momentum, the Competition and Markets Authority has granted strategic market status to tech giants Apple and Google within the mobile sector. This designation is intended to impose stricter competitive practices and oversight, reflecting the UK’s increasing attention to maintaining fair competition in critical technology markets.

This wave of regulatory actions and market adjustments illustrates the UK’s proactive stance in shaping a controlled yet progressive environment amid evolving financial, technological, and commercial landscapes.

📌 Reference Map:

  • Paragraph 1 – [1] (Devdiscourse), [2] (Reuters), [5] (Finance Magnates)
  • Paragraph 2 – [2] (Reuters), [3] (Coindesk), [5] (Finance Magnates), [6] (Coindesk)
  • Paragraph 3 – [3] (Coindesk), [6] (Coindesk)
  • Paragraph 4 – [1] (Devdiscourse)
  • Paragraph 5 – [1] (Devdiscourse)
  • Paragraph 6 – [1] (Devdiscourse)

Source: Noah Wire Services