Sun defended HTX: are Binance's restrictions limited to the EU and Britain, or is this just an excuse?
HTX founder Justin Sun rushed to reassure exchange users after Binance added the platform to its blacklist. However, his explanations look ambiguous and raise more questions than answers. According to Sun, the restrictions apply exclusively to Binance clients from the UK and the European Union, and he has already held talks with Binance management on this matter.
Official position: geography or a global ban?
The key point here is the discrepancy in wording. In the official Binance notice sent to users, there is no mention of geographic targeting. The exchange warned all clients that transactions with restricted platforms may be suspended for compliance checks under requirements that took effect after a certain date. The list includes 11 platforms, and HTX is just one of them.
Sun, however, claims the issue is localized. He stated that HTX does not operate directly in the UK or the EU, and that negotiations with British and European regulators are already underway. Yet data from the UK Financial Conduct Authority (FCA) paints a different picture. In 2023 alone, HTX's website was visited 4.6 million times from the UK, placing the exchange sixth in traffic among crypto companies in the country. Registration of new British users was only closed after a regulator lawsuit.
Timing and the essence of the negotiations
The timeframes here are highly telling. Binance will cut off HTX on August 23—exactly two days before the moratorium in the High Court of London expires, which is in effect until August 25. This moratorium is directly linked to the FCA lawsuit against HTX over illegal advertising. Sun confirms that negotiations with the FCA are ongoing but remains silent about which specific EU body he is in contact with.
In my view, Sun's statement is an attempt to manage reputational damage. Apparently, Binance is acting preemptively to protect itself from regulatory risks in jurisdictions where HTX is already under close scrutiny from authorities. HTX users, especially those from the EU and the UK, should be prepared for individual checks and potential delays in withdrawing funds.