FCA v HTX: Financial promotions enforcement crosses borders

On 10 February 2026, the UK’s Financial Conduct Authority (FCA) announced that it has commenced a legal action against Panama-based, global crypto exchange HTX for illegally promoting cryptoasset services to UK consumers.

The legal action follows the FCA’s recently-published proposals which will create a regulatory regime for cryptoassets overseen by the FCA. Firms wishing to provide certain cryptoasset services in the UK, or to its consumers, must be authorised and supervised by the FCA. 

This article sets out the details of the FCA’s legal action, the implications and key takeaways for crypto exchanges and the professionals advising them. We also explain what this means for the FCA’s broader approach in respect of cryptoassets. The FCA’s recent actions demonstrate its determination to protect UK consumers where in-scope organisations risk causing harm to them.

Legal Action

The FCA’s financial promotions rules came into force in October 2023. The rules seek to tackle unfair and misleading marketing by firms. All firms providing crypto products to UK consumers must comply with them. It is a criminal offence to advertise cryptoassets on social media or websites accessible to UK consumers where the marketing does not comply with these rules. 

Before the 10 February 2026 announcement, HTX (which was founded in 2013 in China) was warned about its non-compliant promotion of crypto services to UK consumers. HTX was placed on the FCA’s Warning List in October 2023 – the same day the FCA’s financial promotions regime came into place. 

When a company is placed on the Warning List, it means that the company is operating without authorisation. As a result, consumers are warned to act with caution before they interact with the company. This is likely to result in lost business for a firm, so is not a decision which is taken lightly.

The FCA’s concerns have now escalated. The FCA argues that, despite the warnings, HTX has continued to breach financial promotions rules, through publications on its website and on social media platforms (including TikTok, X, Facebook, Instagram and YouTube). According to the FCA, HTX applications continue to be available on the Google Play and Apple stores in the UK. The FCA states that this is a clear indication that HTX has failed to implement adequate restrictions to avoid infringing the financial promotions rules. 

This case demonstrates that, before considering legal action, the FCA will seek to engage with the relevant firm. This does not appear to have worked. The FCA says that “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.” 

The FCA further underlines this view in its Particulars of Claim (the Particulars). The Particulars sets out attempts by the FCA to contact HTX between 4 July 2023 until 4 October 2024. No response was apparently received until 22 October 2024. This was considered to be an insufficient level of cooperation. 

The FCA has said that since it commenced proceedings, HTX has taken steps to restrict new UK customers from registering an account. However, there remains clear evidence of visits to the HTX website from the UK. This was supported by evidence that (a) FCA staff members were able to access the HTX website until the day of filing; (b) GBP is an available currency; and (c) HTX account verification can be passed by providing a UK photo ID. HTX has apparently given no indication or assurance that the changes will be permanent. As a result, the FCA remains concerned that ongoing breaches will continue. 

First action against crypto law firm

This is the first time that the FCA has taken enforcement action against a crypto firm for illegally marketing their products to UK consumers. This makes it clear that the FCA will not tolerate breaches and inaction by firms trading in this area, particularly as we head towards regulation in 2027. When cryptoasset firms become regulated, there will be much stricter regulatory rules in place to ensure that firms properly engage with the FCA.

This is not the first action taken by the FCA in a crackdown on illegal financial promotions. The FCA brought charges against a group of “finfluencers” in the summer of 2024 in relation to an unauthorised forex (foreign exchange) trading scheme which the finfluencers had promoted on various social media channels to UK consumers. On 20 February 2026, the FCA confirmed that seven individuals were sentenced at Southwark Crown Court following guilty pleas, resulting in a series of fines.

Key takeaways and practical considerations for lawyers

It remains to be seen precisely how the FCA will enforce against HTX. If the individuals operating the exchange remain unidentified or do not submit to the English courts, the prospect of a conviction being heeded by the defendants is uncertain. However, this action is primarily about deterrence. It ought to encourage good practices by cryptoasset firms. 

The HTX legal proceedings send a clear message to all crypto exchanges that the FCA expects compliance with its financial promotions regime. They clarify that the regime applies to all communications capable of having effect in the UK, regardless of whether the exchange is based in the UK or abroad, and regardless of whether UK consumers are directly and specifically targeted. The FCA will wish to lay down a marker to show that it can effectively supervise cryptoasset firms.

Lawyers advising exchanges ought to impress on their clients that the FCA will enforce its rules where co-operation is lacking. Unauthorised overseas exchanges must ensure that they do not (whether deliberately or inadvertently) target UK consumers. Lawyers must advise their corporate clients that active steps must be taken to ensure this does not happen, including geo-blocking UK consumers, removing GBP as an available currency and ensuring that if UK-issued identification is used, further checks are implemented. As HTX has discovered, the rules go beyond targeting UK consumers. 

The FCA’s approach is only likely to intensify when the cryptoasset regulation regime comes into force on 25 October 2027.

The FCA’s action in this case is a strong sign that firms wishing to access UK markets and reach its consumers need to align with the FCA’s framework and acknowledge its underlying purpose of consumer protection. The financial promotions regime is a key part of the FCA’s current enforcement regime. Those operating in that perimeter cannot afford to be complacent about this. 

Overall, a firm does not need to have a physical presence in the UK in order to feel the bite of the UK’s rules. 

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