Sun refutes the scale of the block: Binance's restrictions on HTX only affect the EU and Britain.
HTX founder Justin Sun has issued an urgent statement aimed at easing panic among the exchange's users. According to him, the restrictions imposed by Binance on HTX are targeted and affect exclusively clients from the United Kingdom and the European Union. Notably, in Binance's own official notice, which I have analyzed, there is no geographical reference—it is addressed to the entire global user base.
Justin Sun's Comment
Sun made this statement on Friday evening, just a few hours after Binance announced adding HTX to its blacklist. The timing here is highly telling: the deadline for the restrictions to take effect is set for August 23, which coincides with the final stage of HTX's negotiations with regulators.
"I have discussed this topic with Binance, and it only concerns Binance users in the UK and the EU. Huobi itself does not operate in the UK or the European Union. Our negotiations with British and European regulators are already underway," Sun wrote.
He also assured that affected users can contact HTX support, and the exchange will help resolve issues on an individual basis.
Binance Restrictions and HTX's Position
Here I see a clear discrepancy between Sun's statement and Binance's official position. The largest crypto exchange did not single out any country in its notice, warning all users that operations with restricted platforms may be suspended for compliance checks after the effective date. In the same announcement, Binance restricted 11 platforms, and HTX is just one of them.
Sun's second statement raises questions for me. The UK Financial Conduct Authority (FCA) claims that in 2023, the HTX website was visited 4.6 million times from the UK—ranking sixth among crypto companies by British traffic. HTX closed registration for new British users only after a regulator lawsuit. The claim about negotiations with British authorities is confirmed: a moratorium is in effect at the High Court until August 25, and HTX is currently in talks with the FCA regarding illegal advertising. Sun, however, did not specify which EU body the negotiations are with.
The timeline is extremely tight: Binance will cut off HTX on August 23—two days before the moratorium ends in London. This creates additional pressure on the negotiation process and could be perceived as a signal to the market about systemic risks.
My analysis: Sun's public position looks like an attempt to manage reputational damage, but the facts point to a deeper problem. The discrepancy between the parties' statements and the FCA data on significant British traffic indicate that regulatory pressure on HTX may be far more serious than the exchange's leadership acknowledges. Investors should closely monitor developments until August 25—this period will be decisive for HTX's future in Western markets.