Sun refutes the scale of Binance's block: HTX restrictions will only affect the EU and Britain
HTX (formerly Huobi) founder Justin Sun rushed to soften the informational blow from Binance's decision to blacklist the exchange. According to him, the real scale of the restrictions is significantly narrower than it seems at first glance.
The situation escalated ahead of the August 23 deadline, when Binance will stop processing transactions with a number of platforms included in the restricted list. However, Sun claims that this concerns exclusively Binance clients from the UK and the European Union, not a global ban for all users.
Justin Sun's Comment
Late Friday evening, just a few hours after the official notice from Binance, Sun issued clarifications. He emphasized that he personally discussed this matter with Binance representatives and received confirmation: the restrictions apply only to jurisdictions where HTX does not have a license to operate.
"I discussed the topic with Binance, and this concerns only 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," Sun stated.
He also added that affected users can contact HTX support, and the exchange will help resolve issues on an individual basis, guaranteeing the safety of funds.
Binance Restrictions and HTX's Position
However, the Binance notice itself contains no mention of geographic targeting. The exchange warned all users about a possible suspension of operations with restricted platforms to verify compliance after the decision takes effect. In total, Binance added 11 platforms to its blacklist.
Sun's statement that HTX does not operate in Britain raises questions. The UK Financial Conduct Authority (FCA) records that in 2023, the HTX website was visited 4.6 million times from Britain — ranking sixth among crypto companies in British traffic. At the same time, HTX closed registration for new British users only after a regulator lawsuit.
Interestingly, the claim about negotiations with British authorities finds confirmation. A moratorium is in effect in the High Court until August 25, and HTX is negotiating with the FCA over an unresolved advertising campaign. At the same time, Sun did not specify which EU body the negotiations are being held with.
The timelines are extremely tight: Binance will cut off HTX on August 23 — two days before the moratorium ends in London. This creates additional pressure on both sides to find a compromise.
My analysis: The situation demonstrates the growing fragmentation of the crypto market under regulatory pressure. Even if Sun's interpretation is correct, the very fact of HTX being included in Binance's blacklist is an alarming signal for the entire industry. Exchanges are increasingly forced to sacrifice partnerships to comply with local authorities' requirements, and this will only intensify the isolation of unlicensed platforms in Western jurisdictions.