UK’s FCA Sues HTX Over Illegal Crypto Promotions: A Landmark Crackdown in 2026

• Why Is the FCA Taking Legal Action Against HTX?
• HTX’s Regulatory Woes: A Global Pattern?
• What Are HTX’s New USDe Services Amid the Scandal?
• How Do HTX’s Actions Compare to Industry Norms?
• What’s Next for HTX and UK Crypto Regulation?
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The UK’s Financial Conduct Authority (FCA) has launched a historic lawsuit against crypto exchange HTX for illegally marketing crypto services to British consumers. The case, filed in October 2025, marks the FCA’s first enforcement action against a crypto firm for breaching new financial promotion rules. HTX, registered in Panama, faces allegations of opaque operations and ignoring regulatory warnings. Meanwhile, HTX has rolled out a new USDe staking service, offering up to 15% annual yields—raising questions about its priorities amid regulatory scrutiny.

Why Is the FCA Taking Legal Action Against HTX?

The FCA alleges HTX repeatedly violated the UK’s crypto advertising rules, which require promotions to be approved by authorized firms and include clear risk disclosures. Despite warnings, HTX continued targeting UK consumers via its website and social media (TikTok, X, Facebook). “HTX’s conduct starkly contrasts with firms complying with our rules,” said Steve Smart, FCA’s enforcement co-head. The regulator has demanded app stores and social platforms block HTX in the UK.

HTX’s Regulatory Woes: A Global Pattern?

HTX (formerly Huobi) has restricted services in the US, China, Hong Kong, and other jurisdictions due to regulatory pressures. The FCA notes HTX’s “opaque ownership structure” and failure to engage with regulators. Existing UK users can still access promotions deemed illegal—a red flag for the FCA, which added HTX to its warning list. “Consumers won’t be protected by UK schemes if they complain,” the agency emphasized.

What Are HTX’s New USDe Services Amid the Scandal?

While battling regulators, HTX launched a USDe minting/redemption service using Ethena Labs’ smart contracts, eliminating spot order books. A daily rewards program offers passive income for USDe holders, with a 10,000 USDe trading campaign until February 20. HTX plans to introduce a flexible USDe product yielding up to 15% annually—raising eyebrows given its compliance issues.

How Do HTX’s Actions Compare to Industry Norms?

Most crypto firms adjusted marketing or exited the UK after the FCA’s 2023 rules took effect. HTX’s defiance is atypical, says the BTCC research team: “This case tests the FCA’s ability to enforce cross-border.” Data from CoinMarketCap shows HTX’s trading volumes dropped 12% since October 2025, suggesting reputational damage.

What’s Next for HTX and UK Crypto Regulation?

The FCA’s lawsuit could set a precedent for offshore crypto firms targeting UK users. With hearings set for 2026, the outcome may reshape global crypto marketing. Meanwhile, HTX’s aggressive product rollout—prioritizing yields over compliance—signals a high-risk strategy.

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What penalties does HTX face from the FCA?

The FCA could impose unlimited fines or seek a court order banning HTX from UK operations. Non-compliance may also trigger criminal proceedings.

Can UK users still trade on HTX?

Yes, but the FCA warns they lack protection. HTX has only restricted new UK sign-ups, not existing accounts.

How does USDe differ from other stablecoins?

USDe uses algorithmic mechanisms via Ethena Labs, unlike fiat-backed stablecoins. Its 15% yield offer is unusually high, per TradingView data.