Justin Sun: Binance's restrictions on HTX will only affect users in the UK and EU — what does this mean for the market
HTX founder Justin Sun stated that the restrictions imposed by Binance apply exclusively to clients from the United Kingdom and the European Union, not to all users of the exchange. At the same time, Binance's official notice makes no mention of geographic filters — this discrepancy requires close attention.
Sun made this statement on Friday evening, just a few hours after Binance announced it had blacklisted HTX. According to him, negotiations with British and European regulators are already underway, which should mitigate the consequences for affected clients.
Justin Sun's Comment
"I discussed this issue with Binance, and it only concerns Binance users in the UK and the EU. Huobi itself does not operate in these jurisdictions, but our negotiations with regulators are already ongoing," Sun wrote on social media platform X. He also added that affected users can contact HTX support, and the exchange will help resolve issues on a case-by-case basis.
Binance Restrictions and HTX's Position
In its notice, Binance did not single out any country, addressing the warning to all users. The exchange emphasized that transactions with restricted platforms may be suspended for compliance checks after the effective date. In total, Binance restricted 11 platforms, including HTX.
However, Sun's second statement raises questions. The UK Financial Conduct Authority (FCA) claims that in 2023, the HTX website was visited 4.6 million times from the UK — ranking sixth among crypto companies by British traffic. HTX only closed registration for new British users after a lawsuit from the regulator.
The claim about negotiations with British authorities is confirmed: a moratorium is in effect at the High Court until August 25, and HTX is in talks with the FCA regarding illegal advertising. Sun did not specify which EU body the negotiations are with. The timeline is extremely tight: Binance will cut off HTX on August 23 — two days before the moratorium in London ends.
My analysis: This situation highlights the growing regulatory pressure on crypto exchanges, especially in Europe. The gap between Sun's statements and Binance's official position creates uncertainty for HTX users, who may face blockages without warning. I recommend traders from the EU and the UK withdraw their funds from HTX in advance to avoid asset freezes in the coming days.