The Financial Conduct Authority (FCA) has begun legal proceedings against global crypto exchange HTX (formerly Huobi) for illegally promoting cryptoasset services to UK consumers.

Firms providing crypto products to UK consumers need to comply with rules which protect consumers from unfair and misleading marketing. Advertising cryptoassets on social media or websites without complying with these rules is a criminal offence.

Since the rules came into force in October 2023, the FCA has engaged extensively with firms, and the majority have reacted positively in complying with the new regime.

The FCA previously warned about HTX’s illegal promotion of crypto services to UK consumers. However, it has continued to publish financial promotions in breach of these rules on its website and on social media platforms, including TikTok, X, Facebook, Instagram and YouTube.

HTX operates an opaque organisational structure, hiding the identities of its owners and the operators of its website. Repeated attempts by the FCA to engage with HTX have been ignored. Since issue of the proceedings, HTX has taken steps to restrict new UK customers from registering an account. However, existing UK users can still log in and access unlawful financial promotions, and HTX has given no assurance that the changes will be permanent. The FCA therefore remains concerned that the risk of ongoing breaches continues.

To protect consumers, the FCA requested social media companies block HTX’s social media accounts to UK-based consumers and requested the removal of HTX applications from the Google Play and Apple stores in the UK.

HTX is currently on the FCA’s Warning List. Consumers dealing with this firm will not have access to the Financial Ombudsman Service if they have a complaint.

Consumers are unlikely to get their money back if it goes out of business and should avoid dealing with this, or similar unauthorised firms.