Sun refutes the scale of the block: Binance's restrictions for HTX will only affect the EU and Britain.
HTX founder Justin Sun publicly stated that the exchange's inclusion on Binance's "blacklist" has a much narrower geographic scope than it appears at first glance. According to him, the restrictions will affect exclusively users from the United Kingdom and the European Union, not all clients of the global platform.
This statement came on Friday evening — just a few hours after Binance circulated a notice about blocking operations with HTX. However, Binance's message itself contained no mention of country-specific restrictions, which created grounds for misinterpretation and panic among asset holders.
What exactly Sun said
In his account on social network X, Sun explained that he had already held negotiations with Binance representatives. He emphasized: "This only concerns Binance users in the UK and the EU. Huobi itself does not operate in these jurisdictions. Our negotiations with British and European regulators are already underway."
The businessman also added that affected clients can contact HTX support, and the exchange will help resolve issues on an individual basis. However, this position raises a number of questions, especially given official data from regulators.
Discrepancies with reality
Binance's notice was addressed to all users without exception, and it listed 11 platforms whose operations may be suspended for compliance checks after the effective date. This is standard practice for a global exchange, but the lack of geographic clarifications makes Sun's claim about the "local" nature of the restrictions at least debatable.
Moreover, data from the UK Financial Conduct Authority (FCA) paints a different picture. In 2023, the HTX website was visited 4.6 million times from the UK — the sixth-highest figure among all crypto companies by British traffic. At the same time, HTX only closed registration for new British users after a lawsuit from the regulator.
Sun's statement about negotiations with British authorities is partially 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. However, Sun did not specify which EU body consultations are being held with, leaving room for maneuver.
Critical deadline
The timing here is extremely telling: Binance will cut off HTX on August 23 — exactly two days before the moratorium expires in London. This creates a tight deadline for resolution, and any delays could worsen the situation for users who find themselves caught between two fires.
My analysis: Sun's statement is an attempt to manage reputational damage, but FCA data shows that the British market was significant for HTX. Even if the exchange formally does not "operate" in the jurisdiction, actual user access existed, and the regulator has documented this. The question is not who the block will affect, but how quickly the parties can find a compromise before August 23. Otherwise, we will see a wave of complaints and, likely, new lawsuits.