Sun commented on HTX's blacklist by Binance: the restrictions will only affect a portion of users.
HTX founder Justin Sun issued an official statement aimed at calming panic among exchange users after Binance added HTX to its blacklist. According to him, the imposed restrictions are targeted and apply exclusively to clients from the United Kingdom and the European Union. Notably, the notification itself sent by Binance to users lacks such geographic specificity — it refers to all platform clients.
Details of Sun's statement
Sun commented on the situation on Friday evening, just a few hours after Binance officially announced the block. In his post, he emphasized that he had already held talks with Binance representatives and received assurances that the restrictions would not affect the global audience. "This only concerns Binance users in the UK and the EU. Huobi itself does not operate in these jurisdictions. We are already in negotiations with British and European regulators," Sun wrote.
He also added that affected clients can contact HTX support, and the exchange will help resolve any issues on an individual basis.
Discrepancies with Binance's official position
However, Sun's wording raises questions. The Binance notification that reached the market does not mention specific countries. The exchange only warned that transactions with restricted platforms may be suspended for compliance checks after the decision takes effect. In total, Binance restricted operations with 11 platforms, and HTX is just one of them.
Furthermore, Sun's claim that HTX does not operate in the UK contradicts data from the local regulator. The Financial Conduct Authority (FCA) reports that in 2023, the HTX website was visited 4.6 million times from the UK, placing the exchange sixth among crypto companies by British traffic. Registration of new users from the UK was only closed after a regulator lawsuit.
Negotiations with British authorities are indeed underway. A moratorium is in effect at the High Court of London until August 25, and HTX is already discussing a settlement with the FCA regarding the case of illegal advertising. However, Sun did not specify which EU body the negotiations are being held with.
The timeline is extremely tight: Binance will cut off HTX on August 23 — two days before the moratorium expires in London.
My analysis: The situation demonstrates how regulatory pressure in Europe is changing the architecture of the crypto market. Even if Binance's restrictions indeed only concern the EU and the UK, the reputational damage to HTX is obvious. The market should closely monitor the outcome of negotiations with the FCA — this will set a precedent for other exchanges operating in the gray zone.