San refutes the global nature of the Binance block: restrictions will only affect the EU and the UK
HTX (formerly Huobi) founder Justin Sun has issued an official statement aimed at calming panic among the exchange's users. According to him, the restrictions Binance imposed on operations with HTX are targeted and apply exclusively to clients in the United Kingdom and the European Union.
This statement came on Friday evening—just a few hours after Binance notified that it had added HTX to its list of restricted platforms. Notably, the notification from the world's largest crypto exchange made no mention of the geographic scope of the sanctions, which sparked a wave of speculation and concern among asset holders.
What exactly did Sun say?
In a post on his social media account on X, the entrepreneur explained that he had personally discussed the situation with Binance representatives. "This only applies to Binance users in the UK and the EU. Huobi itself does not operate in these jurisdictions. Negotiations with British and European regulators are already underway," Sun wrote.
He also moved quickly to reassure affected clients, promising that HTX's support team would review each inquiry on an individual basis and help resolve any issues that arise.
Where the statement diverges from reality
However, on closer inspection, Sun's position raises a number of questions. The Binance document that came into my possession does not single out specific countries and is addressed to all users without exception. The exchange warned that transactions with restricted platforms may be frozen for compliance checks after the rules take effect. A total of 11 platforms were placed on the blacklist.
The claim that HTX does not operate in the UK also appears questionable. According to data from the Financial Conduct Authority (FCA), the HTX website was visited from the UK 4.6 million times in 2023—the sixth-highest figure among all crypto companies in terms of British traffic. The exchange only closed registration for new UK users after a lawsuit from the regulator.
Nevertheless, the information about negotiations with British authorities is confirmed. 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. Sun, however, did not specify which EU body consultations are being held with.
Time is of the essence here: Binance will disconnect HTX on August 23—just two days before the moratorium in London expires.
My analysis: Such discrepancies between statements and official documents are a troubling signal for the market. Even if Sun is right and the restrictions are indeed local, the very haste and opacity of communication between the two industry giants undermines confidence in institutional stability. For HTX users, this means they should prepare for potential delays in withdrawing funds regardless of jurisdiction, rather than relying on verbal assurances.