San vs Binance: Analyzing HTX's Statement on "Geographic" Restrictions and the Real Background of the Conflict
HTX founder Justin Sun publicly responded to the exchange being added to Binance's "blacklist," claiming that the restrictions apply exclusively to users from the United Kingdom and the European Union. However, an analysis of Binance's official notice and past regulatory actions paints a more complex picture than a simple geographical block.
The situation escalated on Friday evening, just a few hours before the deadline set by Binance. Sun was quick to state that he had personally discussed the matter with Binance representatives and that it only concerns clients from the UK and the EU. He emphasized that HTX itself does not operate in these jurisdictions and is already in talks with local regulators about a global settlement.
However, looking at Binance's official notice, there is not a single mention of specific countries. The document is addressed to all users without exception and warns of a possible suspension of operations with restricted platforms to verify compliance. This is the first discrepancy in Sun's statement.
The second point raises even more questions. The UK Financial Conduct Authority (FCA) previously recorded significant traffic from the country to the HTX website — 4.6 million visits in 2023. This casts doubt on the claim that the exchange "does not operate" in the UK. Although registration for new British users was closed, this only happened after a lawsuit filed by the regulator.
Tight deadlines and real negotiations
It is worth noting that Sun's statement about negotiations with British authorities has some basis. There is a moratorium in the High Court of London until August 25, and HTX is indeed in talks with the FCA regarding unregulated advertising activities. However, Sun did not specify which EU body the negotiations are being held with, leaving room for speculation.
The key point is the timeline. Binance disconnects HTX on August 23, two days before the moratorium expires in London. This looks like a clear signal from the largest exchange: regulatory pressure on HTX has reached a critical point, and Binance does not intend to wait for the outcome.
My analysis: Sun's statement is an attempt to manage reputational damage and calm the market. However, the absence of country-specific references in Binance's notice and historical traffic data indicate that the problem is systemic in nature, not local. Negotiations with the FCA are a positive step, but the tight deadlines and Binance's tough stance suggest that trust in HTX among key players has been undermined. I recommend that HTX users closely monitor developments and be prepared for potential delays in withdrawing funds.