Justin Sun on HTX blocking on Binance: restrictions will only affect the EU and the UK
HTX (formerly Huobi) founder Justin Sun has issued an urgent statement in response to Binance's decision to blacklist the exchange. According to him, the restrictions apply exclusively to users in the United Kingdom and the European Union, not the global client base. This statement came just hours before the deadline set by Binance for August 23.
What exactly Sun said
Sun emphasized that he has already held talks with Binance's management and clarified the details. "I discussed this issue with Binance. 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 wrote on social media platform X, adding that affected clients can contact HTX support for individual resolution of issues.
Discrepancy with Binance's official notice
However, Binance's wording raises questions. In the official notice, the exchange did not mention specific countries but addressed the warning to all users. Binance warned that transactions with restricted platforms may be suspended for compliance checks after the effective date. As part of this move, Binance restricted as many as 11 platforms, and HTX is just one of them.
Moreover, Sun's claim about not operating in Britain contradicts regulator data. The UK Financial Conduct Authority (FCA) reports that in 2023, the HTX website was visited 4.6 million times from Britain—the sixth-highest figure among all crypto companies by UK traffic. Registration for new British users was only closed after a regulator lawsuit.
Negotiations and tight deadlines
The claim about negotiations with British authorities is confirmed: a moratorium is in effect at the High Court until August 25, and HTX is in talks with the FCA regarding illegal advertising. However, Sun did not specify which EU body consultations are being held with. The timing is critical: Binance will cut off HTX on August 23—just two days before the moratorium in London expires.
My analysis: Sun's public stance looks like an attempt to soften the reputational blow, but FCA data casts doubt on his words about "not operating" in Britain. Investors should monitor the progress of negotiations with regulators—the outcome of this case could set a precedent for other exchanges operating in the gray zone of European legislation.