Sun refutes the global nature of Binance restrictions: the HTX blacklist will only affect the EU and Britain.
HTX founder Justin Sun was quick to clarify the situation surrounding the sudden operational restrictions imposed by Binance. Contrary to initial concerns, he claims that the sanctions are not global but strictly regional in nature, affecting exclusively users in the United Kingdom and the European Union. Notably, the official Binance notice that caused the uproar lacks any geographical reference, which has fueled a wave of speculation.
Statement amid deadline
Sun made his statement on Friday evening, just a few hours after Binance published its warning. This came against the backdrop of the approaching August 23 deadline, when the restrictions are set to take effect. Commenting on the situation, Sun emphasized that he had personally discussed the matter with Binance representatives. According to him, the restrictions apply only to the exchange's clients in the UK and the EU, and he stressed that HTX itself does not operate in these territories. Moreover, he stated that negotiations are underway with British and European regulators to reach a settlement.
Sun also moved quickly to reassure affected users, promising that HTX's support team will help each individual resolve any issues that arise.
Where the statement diverges from the facts
However, my analysis shows that Sun's statements raise a number of questions. First, Binance did not single out any specific country in its notice, addressing it to all users at once. The exchange warned that operations with restricted platforms may be suspended for compliance checks after the effective date. A total of 11 platforms were placed on Binance's blacklist.
Second, the claim that HTX does not operate in the UK contradicts data from the local regulator, the FCA. According to their statistics, in 2023 the HTX website was visited 4.6 million times from the UK, placing it sixth among crypto companies in terms of British traffic. Notably, HTX only closed registration for new British users after a lawsuit from the regulator.
The statement about negotiations with British authorities, however, does find confirmation. A moratorium is in effect in the High Court until August 25, and HTX is indeed in talks with the FCA regarding illegal advertising. However, Sun did not specify which EU body the negotiations are being held with.
My comment: The situation looks like an attempt by Sun to minimize reputational damage and prevent panic among clients. However, the discrepancy between the statements and regulator data, as well as the extremely tight timeline—just two days until the deadline—indicates that the conflict may be deeper than it appears at first glance. I recommend that HTX users in the EU and the UK closely monitor developments and be prepared for possible transaction delays.