Sun commented on the blocking of HTX on Binance: restrictions will only affect the EU and the UK.
HTX founder Justin Sun stated that the restrictions imposed by Binance on his exchange apply exclusively to users from the United Kingdom and the European Union. However, the official notification from Binance that came to my attention contains no geographical reference whatsoever.
This statement was made on Friday evening—just a few hours after Binance announced adding HTX to its blacklist. Sun emphasized that he has already held talks with Binance representatives and is discussing the possibility of a global settlement with UK and EU regulators.
What exactly Sun said
"I have discussed this matter with Binance, and it concerns only Binance users in the UK and the EU. Huobi itself does not operate in these jurisdictions. Negotiations with British and European regulators are already underway."
He also added that affected clients can contact HTX support—the exchange promises to resolve issues on a case-by-case basis.
Where the statements diverge from reality
In the Binance notification I analyzed, there is no mention of specific countries—it is addressed to all users without exception. The exchange warned that transactions with restricted platforms may be suspended for compliance checks after the decision takes effect. A total of 11 platforms were listed, and HTX is one of them.
Sun's second claim raises even more questions. The UK Financial Conduct Authority (FCA) reports that in 2023, the HTX website was visited 4.6 million times from the UK—ranking sixth among all crypto companies in British traffic. Moreover, HTX only closed registration for new UK users after a lawsuit from the regulator. So the assertion that the exchange "does not operate" in the region looks at least questionable.
The claim about negotiations with British authorities, however, is confirmed: a moratorium is in effect in the High Court until August 25, and HTX is indeed in talks with the FCA regarding illegal advertising. Sun, however, did not specify which EU body consultations are being held with.
The timeline here is extremely tight: Binance will cut off HTX on August 23—two days before the moratorium in London expires.
My comment: The situation is telling: Binance is acting preemptively, clearly over-insuring itself in the face of tightening regulation in Europe. For HTX, this is a serious blow to liquidity, but Sun's reaction is an attempt to minimize reputational damage. The only question is how quickly an agreement with the FCA can be reached—otherwise, the restrictions could extend far beyond the EU and the UK.