Justin Sun responded to Binance's restrictions: clarifications on HTX and the fate of user funds
HTX founder Justin Sun has publicly commented for the first time on Binance's recent decision to add the exchange to its list of restricted platforms. According to him, the measures introduced affect only users from the United Kingdom and the European Union, not the global client base. This statement came just a few hours after the world's largest crypto exchange announced it would block operations with a number of platforms, including HTX.
Sun emphasized that he personally discussed the situation with Binance representatives and concluded that the restrictions are local in nature. "Huobi does not operate in the UK or the EU, but negotiations with British and European regulators are already underway," he noted in his statement. The head of HTX also assured that affected clients can contact the exchange's support service, where their issues will be resolved on an individual basis.
Binance restrictions: details and contradictions
Binance's official notice, however, does not contain geographical clarifications. The exchange warned all users of a possible suspension of transfers to restricted platforms for compliance verification. In total, 11 services fell under the restrictions, and HTX is just one of them.
Sun's claim that HTX does not operate in the UK raises questions. According to data from the Financial Conduct Authority (FCA), in 2023 the HTX website was visited 4.6 million times from the UK, placing the platform sixth in British traffic among crypto companies. The exchange closed registration for new British users only after a lawsuit from the regulator.
Negotiations with regulators and tight deadlines
The statement about negotiations with British authorities is confirmed. A moratorium is in effect in the High Court until August 25, and HTX is already in dialogue with the FCA regarding illegal advertising. Sun, however, did not specify which EU body consultations are being held with. The key point is the timeline: Binance will cut off HTX on August 23, just two days before the moratorium expires in London.
My analysis: The situation demonstrates growing regulatory pressure on crypto exchanges operating in the gray zone. Sun's attempt to localize the problem looks like an effort to calm the market, but FCA data suggests otherwise. Investors should closely monitor the development of negotiations — the outcome of this case could set a precedent for the entire industry.