Sun explained the scale of Binance's restrictions for HTX: only the EU and Britain are affected.
HTX founder Justin Sun has publicly responded for the first time to the exchange being placed on Binance's "blacklist." According to him, the restrictions apply exclusively to users in the United Kingdom and the European Union and do not affect the platform's global operational activities. Notably, the official Binance notice listing 11 restricted platforms contains no geographic reference—the document is addressed to all clients without exception.
What exactly Sun said
The comment appeared on Friday evening—just a few hours after Binance announced the blocking of operations with HTX. Sun emphasized that he had already held talks with Binance representatives and confirmed that this concerns only jurisdictions where HTX does not conduct legal activities anyway. He also stated that the exchange is actively negotiating with British and European regulators to resolve the situation.
"I discussed this issue with Binance. The restrictions apply only to Binance users in the UK and the EU. Huobi itself does not operate in these regions. Negotiations with British and European regulators are already underway," Sun wrote.
He added that affected clients can contact HTX support, and the exchange will help resolve issues on an individual basis.
Where statements diverge from facts
Sun's claim that HTX does not operate in the UK raises questions. The UK Financial Conduct Authority (FCA) recorded 4.6 million visits to the HTX website from Britain in 2023—the sixth-highest figure among all crypto companies by British traffic. Registration of new users from the country was only closed after a regulator lawsuit.
Information about negotiations with authorities is confirmed: a moratorium is in effect at the High Court of London until August 25, and HTX is indeed negotiating with the FCA regarding illegal advertising. However, Sun did not specify which EU body the negotiations are being held with—this leaves room for interpretation.
The timeline is extremely tight: Binance disconnects HTX on August 23—two days before the moratorium expires in London. This creates additional pressure on both sides ahead of key legal decisions.
My analysis: The situation looks like a classic example of regulatory pressure escalating into an inter-exchange conflict. Sun's statements about the "local" nature of the restrictions are an attempt to minimize reputational damage, but FCA data suggests otherwise. In the coming days, we will see how serious Binance's intentions are and whether HTX can reach an agreement with regulators before the deadline. The market should closely monitor developments—this could set a precedent for other exchanges.