Justin Sun responded to Binance's restrictions on HTX: what this means for users
HTX founder Justin Sun stated that the restrictions imposed by Binance on his exchange apply exclusively to users in the United Kingdom and the European Union. However, Binance's official notice makes no mention of geographical scope—this is a key discrepancy that warrants close attention.
This statement came on Friday evening—just hours after Binance announced it had blacklisted HTX. Sun also reported that HTX is already in talks with UK and EU regulators over a global settlement.
Justin Sun's Comment
"I discussed this matter with Binance, and it only concerns Binance users in the UK and 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 on his X social media account.
He added that affected users can contact HTX support, and the exchange will help resolve issues on a case-by-case basis.
Binance's Restrictions and HTX's Position
In its notice, Binance did not single out any country, addressing the warning to all users. The exchange warned that transactions with restricted platforms may be suspended for compliance checks after the effective date. In this announcement, Binance restricted 11 platforms.
Sun's second statement raises questions. The UK's Financial Conduct Authority (FCA) claims that in 2023, HTX's website was visited 4.6 million times from the UK—ranking sixth among crypto companies in British traffic. HTX only closed registration for new UK users after a regulator lawsuit.
The claim about negotiations with British authorities is confirmed. A moratorium is in effect in the High Court case until August 25, and HTX is currently in talks with the FCA over illegal advertising. Sun 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 in London ends.
My analysis: The situation looks like a classic regulatory precedent that could set the tone for the entire market. If Binance is indeed restricting HTX only for users in the UK and EU, this creates a dangerous precedent where exchanges begin to play the role of regulators. However, the discrepancy between Sun's statement and the text of Binance's notice makes one wonder: perhaps we are only seeing the tip of the iceberg, and the real consequences for HTX users will prove far more extensive than they are trying to present.