San refutes the global nature of the block: Binance restricts HTX only for the EU and Britain.
HTX founder Justin Sun stated that Binance's restrictions on his exchange apply exclusively to users in the United Kingdom and the European Union. This statement came just hours after Binance officially notified that it had blacklisted HTX, and two days before the deadline of August 23.
Sun emphasized that he discussed the matter directly with Binance representatives. According to him, this is not a global block but targeted measures affecting only clients from the specified jurisdictions. He also noted that HTX does not conduct operational activities in the UK or the EU, but is already in the process of negotiating with regulators in these regions to resolve all claims.
Justin Sun's Comment
On Friday evening, Sun published a clarification on social media stating: "I discussed the topic with Binance, and it only concerns Binance users in the UK and the EU. Huobi itself does not operate in the UK or the European Union. Our negotiations with British and European regulators are already underway." He added that affected users can contact HTX support, and the exchange will help resolve issues on an individual basis.
Where Statements Diverge from Reality
However, Binance's official notice contains no mention of geographic restrictions. The exchange addressed the warning to all users, stating that transactions with restricted platforms may be suspended for compliance checks after the effective date. In the same notice, Binance restricted 11 platforms at once, making no exceptions for specific countries.
Moreover, 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 all crypto companies in British traffic. Notably, HTX only closed registration for new British users after the regulator filed a lawsuit.
The claim about negotiations with British authorities, however, is confirmed. A moratorium is in effect at the High Court until August 25, and HTX is indeed negotiating with the FCA regarding illegal advertising. Sun, however, 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 ends in London.
My analysis: The situation demonstrates the growing fragmentation of the crypto market under regulatory pressure. Sun's attempt to present the restrictions as local is, rather, a PR move to reassure the global client base. But the fact that Binance chose HTX specifically as an example indicates a systematic approach to tightening compliance. Investors should closely monitor the development of the negotiations, as the outcome of this case could set a precedent for other exchanges operating in the "gray zone" of regulation.