Injuncting unauthorised promotions: FCA takes action against HTX

In what marks the FCA's first civil action against a crypto firm for illegally marketing products to UK consumers, the FCA has sought both a declaration of breach and an injunction against HTX - a cryptocurrency exchange. With the new cryptoasset regulatory regime set to come into force from 2027, this case sends a clear message that the FCA will pursue firms that flout UK financial promotion and authorisation rules.

Summary

On 21 October 2025, the FCA issued proceedings against HTX Exchange (HTX), and various persons unknown that own or control HTX, seeking:

1. A declaration that the defendants had breached section 21(1) of the Financial Services and Markets Act 2000 (FSMA) (Financial Promotion Restriction) in the making of certain cryptoasset financial promotions; and
2. An injunction to restrain the defendants from communicating further financial promotions in breach.

On 4 February 2026, the FCA was granted permission to serve its Claim Form and Particulars of Claim on the defendants outside of the jurisdiction via email.

The regulations

The Financial Promotion Restriction was extended to qualifying cryptoassets on 8 October 2023. This prohibits a person from making financial promotions in the UK, or which are capable of having an effect in the UK (if made from outside the UK), unless the person is FCA authorised or the communication is exempt.

There are exemptions for communications made to certain investment professionals and high net worth persons (amongst others), or communications made by persons "registered" for money laundering supervision with the FCA as a cryptoasset exchange provider under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs 2017).

A breach of the Financial Promotion Restriction is a criminal offence under FSMA.

The facts

The FCA alleges that, even though HTX is not authorised or registered for money laundering supervision in the UK, it advertised cryptoassets via social media – including TikTok, X, Facebook, Instagram and YouTube – and these advertisements were capable of having an effect in the UK.

From July through September 2023, the FCA repeatedly informed HTX of the change to the rules and what was required to comply, and sought a response from HTX regarding compliance.

The FCA received no response by 8 October 2023, and placed HTX on its Warning List.

The FCA eventually received a response on 22 October 2024. HTX claimed to have been complying with the Financial Promotion Restriction since 8 October 2023, noting that they had ceased targeting UK customers and establishing operations in the UK before that date. However, in its claim, the FCA notes that HTX did not restrict UK consumers' access to HTX's site or products, and that HTX's advertising on social media was capable of having an effect in the UK.

Since the FCA issued proceedings, HTX has taken steps to restrict new UK customers from registering an account. However, the FCA notes existing UK users “can still log in and access unlawful financial promotions, and HTX has given no assurance that the changes will be permanent”. The FCA therefore remains concerned that the risk of ongoing breaches continues.

In its press release, the FCA also noted "HTX’s conduct stands in stark contrast to the majority of firms working to comply with the FCA’s regime. This is the first time we’ve taken enforcement action against a crypto firm illegally marketing their products to UK consumers. We’ll continue to act against firms who ignore our rules."

It is currently unclear when any substantive proceedings will take place in this matter.

Comment

The proceedings against HTX are in line with the FCA's consumer protection objective, and indicate its willingness to take action – whether civil or criminal – to achieve this.

Persons conducting certain cryptoasset business have been required to be registered under the MLRs 2017 for money laundering supervision since 2020, and cryptoasset financial promotions have been subject to the Financial Promotion Restriction since October 2023.

However, cryptoasset activities are only due to come within the more expansive regulatory regime under the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 from 2027. The FCA is currently consulting on detailed rules that will apply to the various parts of the regulatory framework. Click here to access the FCA roadmap, a useful tool to track the FCA's plans.

The HTX case gives some indication of the approach the FCA will take to compliance with the FSMA regime, and non-compliant firms can expect to be squarely within the FCA's sights. Accordingly, we would encourage firms to take proactive steps to ensure they are engaging with the FCA's expectations and are putting themselves in a position to be able to apply for authorisation and comply with the regulations in due course.

For more information, please contact the authors or your usual DLA Piper contact.