The UK's Financial Conduct Authority is reportedly in settlement discussions with cryptocurrency exchange HTX over allegations that the platform illegally promoted and offered crypto products to British consumers, according to reports.
The Allegations
At the center of the regulator's case is a claim that an FCA employee was able to purchase crypto through HTX from a UK-based IP address, using nothing more than a UK driving license as identification. The regulator points to this transaction as evidence that the exchange was serving British customers without the required authorization.
Under UK rules that came into force in October 2023, firms promoting crypto assets to consumers in the country must be authorized or registered with the FCA, or have their promotions approved by an authorized entity. Exchanges that fall outside this framework are barred from marketing to British users.
An FCA staffer reportedly bought crypto through HTX from a UK address using only a driving license — the crux of the regulator's case.
What a Settlement Could Mean
Settlement talks suggest both parties may be seeking to resolve the matter without a prolonged public dispute. Such arrangements typically involve financial penalties or commitments to change business practices, though the specific terms in this case have not been disclosed.
The situation underscores the FCA's increasingly assertive stance toward offshore crypto platforms that reach into the UK market. The regulator has repeatedly warned consumers about unregistered firms and has maintained a public list of companies it believes are operating without proper permissions.
HTX, formerly known as Huobi, is among the exchanges that have drawn scrutiny from Western regulators over how they engage with local users. The outcome of any settlement could serve as a reference point for how the FCA handles similar cases going forward.
Key aspects of the reported dispute include:
- The FCA's claim that its own employee accessed HTX from a UK IP address
- Allegations that the exchange promoted crypto to UK consumers without authorization
- Ongoing settlement discussions rather than a formal enforcement ruling