The UK Financial Conduct Authority (FCA) has launched a lawsuit against cryptocurrency exchange HTX, owned by controversial cryptocurrency investor Justin Sun, for allegedly violating financial promotion regulations in the UK.
The Financial Conduct Authority (FCA) announced on Wednesday that it has filed a civil case in the High Court in London against HTX, formerly known as Huobi, for allegedly breaching British rules. Financial promotions system. According to the Financial Conduct Authority (FCA) website, HTX is not authorized to operate within the UK.
HTX still under FCA warning
Spokesman for the Financial Supervision Authority He said Reuters The regulator's commitment to protecting consumers and maintaining the integrity of the UK's financial markets.
“We have seen cryptocurrency companies respond positively to our financial promotion rules and regulations,” the spokesperson stated. “However, we will not hesitate to take action against companies that appear to be violating our rules.”
The legal filings name the defendants, including “unknown persons” currently running promotions on behalf of the HTX cryptocurrency exchange across various social media platforms.
Although positive Regulatory changes In the country after leading the US in creating a new framework for the growth and adoption of digital assets, HTX has been on the Financial Conduct Authority's (FCA) warning list of unauthorized firms since October 2023. The FCA advises consumers not to engage with the exchange.
Notably, the Financial Conduct Authority (FCA) has accelerated approvals for cryptocurrency applications in an attempt to study the most favorable regulatory environment for cryptocurrencies and industry companies in the United States, with five companies already approved to operate in the country since April this year.
Under UK law, companies that market crypto asset services to consumers, including those based overseas, are required to register with the Financial Conduct Authority (FCA) in compliance with Money laundering regulations.
In October 2023, the Financial Conduct Authority introduced new rules governing the promotion of cryptocurrency assets, aligning their marketing with other types of financial promotions.
Justin Sun's latest moves in the cryptocurrency space
Founded in 2013 and registered in Seychelles, HTX claims to have over 47 million Registered users Globally, with more than nine million business users, according to the company's website.
Despite his controversial moves, which recently included a key role in the Trump family's cryptocurrency ventures, Justin Sun — the billionaire Chinese businessman and founder of decentralized blockchain platform Tron (TRX) — has acquired HTX in 2022.
Sun is a major supporter of President Donald Trump's decentralized finance (DeFi) platform Global financial freedom (WLFI), having invested nearly $90 million in Trump-related tokens.
It is worth noting that the wallet named “SUN”, which blockchain analysts identified as belonging to HTX, emerged as the first owner of President Trump’s official memecoin launched in January this year.
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