FCA Brings First Enforcement Action Against Offshore Cryptoasset Firm HTX, February 2026

On 10 February 2026, the Financial Conduct Authority announced that it has begun civil legal proceedings in the High Court of England and Wales against HTX (formerly Huobi), a global cryptocurrency exchange headquartered outside the United Kingdom. The FCA filed those proceedings on 21 October 2025. This is the FCA's first enforcement action against an offshore cryptoasset exchange for breach of the UK financial promotion regime. The proceedings are at the pre-trial stage; no judgment has been issued.

Section 21(1) of the Financial Services and Markets Act 2000 (FSMA) prohibits any person from communicating, in the course of business, a financial promotion unless an FCA-authorised person has approved it or an exemption applies. The Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 (SI 2005/1529), as amended by the Financial Services and Markets Act 2000 (Financial Promotion) (Amendment) Order 2023 (SI 2023/936), extended this prohibition to qualifying cryptoasset promotions with effect from 8 October 2023. A person who contravenes section 21(1) commits a criminal offence under section 25 FSMA and may face an unlimited fine or up to two years' imprisonment.

The FCA alleges that HTX published financial promotions on its website and on social media platforms including TikTok, X, Facebook, Instagram, and YouTube, targeting UK consumers without FCA authorisation or an approved promoter. The FCA seeks a declaration that HTX breached section 21(1) FSMA and injunctive relief to stop further unlawful promotions. HTX has been listed on the FCA's Warning List since 2020. Offshore cryptoasset exchanges that communicate any promotion capable of having effect in the United Kingdom must either obtain FCA authorisation, have each promotion approved by an FCA-authorised firm, or satisfy an applicable exemption under SI 2005/1529.

This action marks the first time the FCA has used civil court proceedings to enforce the cryptoasset financial promotions regime against an offshore exchange. The FCA stated that it will pursue firms regardless of where they are incorporated. Exchanges and token issuers that direct marketing at UK users through digital channels should treat this filing as a concrete enforcement benchmark, not a compliance aspiration.

Source: Financial Conduct Authority, Press Release, "FCA takes action against HTX to stop illegal financial promotions," 10 February 2026, https://www.fca.org.uk/news/press-releases/fca-action-against-htx-illegal-financial-promotions (confirmed 18 March 2026).

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