Sun challenges Binance: are the restrictions on HTX limited to the EU and Britain, or is this just the tip of the iceberg?
HTX founder Justin Sun publicly challenged the scope of restrictions imposed by Binance on his exchange. According to him, the blacklist only affects users from the United Kingdom and the European Union, but Binance's official notice contains no geographic specifications. This contradiction calls into question the fate of client funds worldwide.
The statement came on Friday evening — just a few hours after Binance announced the blocking of operations with 11 platforms, including HTX. Sun claims he has already held talks with Binance's management and received assurances that the restrictions are local in nature.
What exactly is Sun saying?
In his address, he emphasized: "I discussed this matter with Binance, and it 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." He also promised that affected HTX clients can contact the exchange's support service, and their issues will be resolved on an individual basis.
However, the wording raises skepticism. Binance's official notice contains no mention of specific countries — the warning is addressed to all users without exception. The exchange directly stated that operations with restricted platforms may be suspended for compliance checks after the rules take effect.
Where Sun's statement diverges from reality
The claim that HTX does not operate in Britain looks questionable at best. The UK Financial Conduct Authority (FCA) records that in 2023, the HTX website was visited 4.6 million times from the United Kingdom — the sixth-highest figure among all crypto companies in terms of British traffic. Registration of new users from Britain was only closed after a regulator lawsuit.
Notably, the statement about negotiations with British authorities has a real basis. A moratorium is in effect at the High Court of London until August 25, and HTX is indeed in dialogue with the FCA regarding illegal advertising. However, Sun did not specify which EU body similar negotiations are being held with, leaving room for maneuver.
My analysis: The situation resembles a classic game of "broken telephone" between two industry giants. Even if the restrictions truly only apply to the EU and Britain, the lack of clear geographic markers in Binance's notice creates legal uncertainty for all HTX users. I recommend that exchange clients do not rely on verbal assurances but independently verify the status of their accounts and operations — especially ahead of the August 23 deadline when the restrictions take effect.