The United Kingdom’s Financial Conduct Authority (FCA) has stepped up its enforcement action against crypto exchange HTX, accusing the platform of illegally promoting crypto services to British consumers and seeking to restrict its presence on all digital platforms in the country.
HTX Faces UK App Store Ban
In a statement issued on Tuesday, the FCA said it had formally asked major social media companies and app store operators to block access to HTX in the UK.
The regulator is seeking the removal of HTX applications from the Google Play Store and the Apple App Store for UK users, as well as the blocking of social media accounts that target British viewers.
The regulator alleges that HTX has repeatedly advertised “illegal crypto services” on popular social media platforms, including TikTok, iX (formerly Twitter), Facebook, Instagram, and YouTube. According to the FCA, these promotions have broken the UK financial regulations which governs how crypto products can be marketed to the public.
The FCA also alleged that HTX was operating under a “distinct business structure” that concealed the identity of its owners and those responsible for managing its website. The FCA also said its repeated attempts to contact the company went unanswered.
While HTX has taken some steps from legal proceedings started—mainly by preventing new UK users from signing up for accounts—the FCA said those measures did not go far enough.
The FCA added that HTX had given no assurance that its restrictions on new users would be permanent, leaving concerns that breaches could continue.
FCA Signals Tougher Crypto Enforcement
Steve Smart, the FCA’s joint senior director of enforcement and market oversight, said the regulator’s rules are intended to support a stable and competitive crypto market while ensuring consumers can make informed decisions.
He said HTX’s behavior was very different from many firms trying to comply with UK regulations. regulatory framework. Smart noted that this is the first time the FCA has taken action to enforce a crypto company for illegally marketing its products to UK consumers.
HTX is currently on the FCA’s Alert List, which means consumers interacting with the platform are not eligible for protections such as access to the Financial Ombudsman Service.
To comment in the case, Nick Barnard, a partner at law firm Corker Binning, said it highlights the difficulty of regulating the crypto industry from a single point.
He noted that the FCA’s options are limited when a company does not have a presence in the UK. However, he added that the regulator may have concluded that it still has to take a tougher stance on companies that openly flout UK laws.
Featured image from OpenArt, chart from TradingView.com
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