FCA sues Justin Sun-linked HTX in London High Court over alleged illegal crypto promotions: Bloomberg

Britain's Financial Conduct Authority (FCA) has launched civil proceedings in a London High Court against several entities that form part of crypto exchange HTX, alleging the platform unlawfully promoted cryptoasset services to U.K. consumers in breach of the country’s financial promotions regime.

The FCA said the action is part of its effort "to protect consumers and uphold the integrity of U.K. financial markets," Bloomberg reported. Previously, the regulator warned UK consumers against using HTX, which operates under the former Huobi brand in some markets.

HTX is publicly linked to Tron founder Justin Sun, who serves as an adviser. The Tron founder is also one of the largest holders of TRUMP, the official memecoin affiliated with U.S. President Donald Trump.

It's unclear whether or not Sun is listed as a defendant in the filing. The watchdog did not disclose further details in its statement, and HTX did not immediately respond to The Block's request for comment.

Regulators have been wary of unregulated crypto promotions in Britain. The FCA issued broad guidance and consumer warnings last year about the risks associated with crypto products.

At the same time, it has proposed updates to bring more firms under full UK oversight, a policy push that is expected to culminate in a final framework next year.

Separately, the UK government and regulators have been preparing structures to expand permissible crypto activity, including plans to appoint a "digital markets champion" and recently opening access to approved bitcoin and ether ETPs — changes that have accelerated a debate about how to bring venues into compliance.