Sun clarifies the situation with HTX blocking on Binance: restrictions will only affect the EU and the UK.
The situation surrounding the sudden inclusion of HTX on Binance's "blacklist" has taken an unexpected turn. HTX founder Justin Sun issued an official statement in which he significantly narrowed the geographic scope of the imposed restrictions. According to him, the block will affect exclusively Binance users located in the United Kingdom and the European Union, and is not global in nature.
This statement came just a few hours after Binance distributed a notice about suspending operations with a number of platforms, including 11 trading venues on the list, among which was HTX. Notably, Binance's notice itself contained no specifics regarding countries — the restrictions were formulated as general for all users.
Justin Sun's Comment
Sun explained that he had already held talks with Binance representatives. "I discussed the topic with Binance, and it only concerns Binance users in the UK and EU. Huobi itself does not operate in the UK or the European Union. Our negotiations with British and European regulators are already underway," he wrote on social media. He also assured that affected users can contact HTX support, and the exchange will help resolve issues on an individual basis.
Where the Statement Diverges from the Facts
However, Sun's statements raise a number of questions. First, data from the UK Financial Conduct Authority (FCA) indicates that in 2023, the HTX website was visited from the UK 4.6 million times. This is the sixth-highest figure among all crypto companies in terms of British traffic. Moreover, HTX only closed registration for new British users after a lawsuit from the regulator.
Second, the claim about negotiations with British authorities is confirmed. There is a moratorium 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, leaving room for interpretation.
The timeline here is extremely tight: Binance will cut off HTX on August 23 — two days before the moratorium expires in London. This creates additional pressure on HTX ahead of important court and regulatory proceedings.
My analysis: The situation demonstrates the growing fragmentation of the crypto market under pressure from regulators. The fact that Binance is acting selectively, and Sun is trying to localize the problem, points to complex behind-the-scenes negotiations. In the short term, this will create uncertainty for HTX users in Europe, but in the long term, it could set a precedent for clearer rules of engagement between exchanges and national jurisdictions.