Justin Sun refutes the global nature of Binance restrictions for HTX: analysis of the situation and implications for users
HTX founder Justin Sun has issued an urgent statement aimed at calming panic among the exchange's users. According to him, the recent restrictions imposed by Binance are targeted rather than global in nature. Sun claims that the block applies exclusively to Binance clients located in the United Kingdom and the European Union and does not affect HTX users in other jurisdictions.
Details of the statement and context
The comment appeared on Friday evening—just a few hours after Binance officially notified that it had added HTX to its "blacklist." In his message, Sun emphasized that HTX does not conduct operational activities in the UK or the EU, and negotiations with regulators in these regions are already underway. He also promised that affected users can contact HTX support to resolve issues on an individual basis.
Where the statement diverges from reality
However, my analysis shows that Sun's position has several weak points. First, Binance's official notice contains no geographical specifications—it is addressed to all users without exception. The exchange warned that transactions with restricted platforms may be suspended for compliance checks, and as many as 11 platforms were added to the list.
Second, the claim about "not operating" in the UK raises questions. Data from the Financial Conduct Authority (FCA) shows that in 2023, the HTX website was visited 4.6 million times from the UK—the sixth-highest figure among all crypto companies in terms of British traffic. In fact, HTX only closed registration for new UK users after a regulator lawsuit, indicating a significant market presence.
It is worth noting that the statement about negotiations with British authorities seems plausible: a moratorium is in effect in the High Court until August 25, and HTX is indeed in dialogue with the FCA regarding illegal advertising. However, Sun did not specify which EU body the negotiations are being held with.
Critical deadline
The situation is complicated by tight timelines: Binance will cut off HTX on August 23—just two days before the moratorium in London expires. This creates an extremely tense environment, and any delays in negotiations could lead to serious consequences for the exchange's liquidity and trust.
My verdict: Sun's statement is an attempt to manage reputational risks, but it does not resolve the key contradictions. HTX users in the EU and the UK should prepare for potential delays in withdrawing funds, and the project itself will need to prove its viability in dialogue with regulators. The market will be closely watching developments until August 23.