San clarified the situation with the HTX block on Binance: the restrictions will not affect everyone.
HTX founder Justin Sun has issued an official clarification regarding Binance's recent decision to blacklist the exchange. According to him, the imposed restrictions are targeted and apply exclusively to users from the United Kingdom and the European Union. This statement came just hours after Binance published a notice that, notably, contained no geographical specifics.
Sun emphasized that HTX does not conduct operational activities in the UK or the EU, and therefore the block should not affect the global client base. He also stated that the exchange is already in talks with regulators in these jurisdictions to resolve the situation. In the event of issues for affected users, Sun promised individual support through HTX's help desk.
Discrepancy in details and regulatory context
However, my analysis shows that the wording from both parties differs significantly. Binance did not single out any country in its notice, addressing the warning to all users. The exchange warned that transactions with restricted platforms may be suspended for compliance checks after the decision takes effect. In total, 11 platforms were subject to the restrictions.
Sun's claim that HTX does not operate in the UK raises questions. According to data from the Financial Conduct Authority (FCA), in 2023, HTX's website was visited 4.6 million times from the UK—the sixth-highest figure among all crypto companies by 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, is confirmed. A moratorium is in effect at the High Court until August 25, and HTX is indeed in talks with the FCA over unresolved claims related to illegal advertising. Sun, however, did not specify which EU body the negotiations are with.
Timing here is critical: Binance will cut off HTX on August 23—exactly two days before the moratorium expires in London. This adds additional pressure on the exchange at the height of legal proceedings.
My comment: The situation demonstrates how regulatory pressure in Europe is increasingly influencing the operational decisions of the market's largest players. The public divergence in the interpretation of restrictions between Binance and HTX is not just a dispute over wording, but a signal of the growing fragmentation of the crypto market along jurisdictional lines. Investors should closely monitor the development of HTX's negotiations with the FCA, as their outcome could set a precedent for the entire industry.