Sun refutes the scale of the block: Binance's restrictions for HTX will only affect the EU and Britain.
HTX founder Justin Sun was quick to clarify the situation regarding recent restrictions imposed by Binance. According to him, the block is not global in nature, but affects exclusively users from the United Kingdom and the European Union. This statement came just hours after Binance officially announced adding HTX to its "blacklist."
What exactly did Sun say?
On Friday evening, Sun stated that he had already held talks with Binance representatives. He emphasized that the restrictions apply only to Binance clients located in the UK and the EU. Notably, he said HTX does not conduct operational activities in these territories. Moreover, Sun reported that the exchange is already in the process of negotiating with UK and EU regulators to reach a global agreement.
"I discussed the topic with Binance, and it only concerns Binance users in the UK and the 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.
Sun also assured that affected users can contact HTX support, and the exchange will provide assistance in resolving issues on an individual basis.
Where the statement diverges from the facts
Binance's official notice contains no geographical specifics. The exchange warned all users that transactions with restricted platforms may be suspended for compliance checks after the decision takes effect. In this announcement, Binance restricted 11 platforms, including HTX.
Sun's claim that HTX does not operate in the UK raises questions. The UK Financial Conduct Authority (FCA) reports that in 2023, the HTX website was visited 4.6 million times from the UK—ranking sixth among crypto companies by British traffic. Interestingly, HTX only closed registration for new British users after the regulator's lawsuit.
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 regarding illegal advertising. Sun did not specify which EU body the negotiations are being held with.
The timing is extremely tight: Binance will cut off HTX on August 23—two days before the moratorium in London ends.
My analysis: The situation demonstrates the growing regulatory pressure on crypto exchanges operating in the "gray zone." Sun's statement is an attempt to manage reputational damage, but FCA data shows that the scale of HTX's presence in the UK was significant. The question of how effective the negotiations with regulators will prove remains open, but ignoring FCA requirements is a path that has already led to serious consequences for other platforms.