FCA and HTX enter settlement talks over unlawful UK crypto promotions

The UK Financial Conduct Authority and HTX are in settlement talks over a case tied to unlawful crypto promotions aimed at UK consumers, according to Reuters, which cited court filings. London’s High Court has paused the proceedings until late August to give both sides time to try to reach terms. The discussions began after the parties exchanged emails in March, followed by a three-month negotiation period that was extended by another two months on June 25. The FCA filed the case on October 21 last year in the Chancery Division, describing it as its first enforcement action of this type against a crypto exchange over marketing. The regulator is seeking an injunction and a court declaration that the defendants breached Section 21 of the Financial Services and Markets Act. The claim names Huobi Global S.A. and several categories of unnamed parties connected to HTX’s ownership, operations, website, and social media. Court documents also say an FCA staff member using a UK IP address was able to buy crypto through HTX’s peer-to-peer service and place futures trades after verifying identity with a UK driving license. Reuters said the case is separate from UK and EU sanctions matters involving HTX and Justin Sun.