The UK's Financial Conduct Authority and crypto exchange HTX have entered settlement talks over the regulator's allegations that the exchange illegally promoted crypto asset services to British consumers, according to reporting cited by Wu Blockchain. London's High Court has suspended the FCA's proceedings until late August to give both sides more room to negotiate.
The case dates to October 2025, when the FCA sued HTX in the High Court, marking the regulator's first legal action against a crypto firm specifically over marketing to UK consumers. The FCA alleges HTX promotions ran across X, Telegram, Facebook, TikTok, YouTube and LinkedIn without the authorization required under UK law, and it is seeking both an injunction and a formal declaration that HTX breached Section 21 of the Financial Services and Markets Act, which bars unauthorized financial promotions.
Talks have been running for months
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Settlement discussions between the two sides began in March and were extended by two months in June before the current pause, suggesting both parties see enough common ground to keep negotiating rather than proceed to a full trial. HTX has maintained that its services aren't intended for UK customers and says it remains committed to compliance, transparency and user protection standards, even as the underlying case continues.
How the case resolves will matter beyond HTX itself. It's the first test of the FCA's willingness to pursue offshore exchanges over promotional reach into the UK market regardless of where the platform is formally headquartered, and a settlement — rather than a court ruling — would leave the legal boundaries of that authority somewhat less clearly defined for the exchanges that follow.
