Sun refutes the global nature of Binance's restrictions on HTX: an analysis of nuances and real risks
HTX founder Justin Sun publicly stated that the exchange's inclusion on Binance's "blacklist" concerns only users from the United Kingdom and the European Union, not all clients of the global platform. However, Binance's official notice contains no geographical specifics, raising legitimate questions about the scope of the restrictions and their impact on user funds.
Sun's statement came on Friday evening—just a few hours after Binance announced the blocking of operations with HTX. According to the founder, he has already held talks with Binance representatives, and the restrictions affect only jurisdictions where HTX lacks official licensing. Sun also emphasized that HTX does not operate directly in the UK or the EU, and negotiations with regulators in those regions are already underway.
"I discussed this issue with Binance, and it concerns only 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 in progress," Sun wrote.
He added that affected users can contact HTX support, and the exchange will help resolve issues on a case-by-case basis.
Binance's official position: lack of details
In Binance's official notice addressed to all users, no specific country is singled out. The exchange warned that operations with restricted platforms may be suspended for compliance checks after the effective date. In the same announcement, Binance restricted operations with 11 platforms, including HTX on that list.
Sun's claim that the restrictions apply only to the UK and the EU raises doubts. The UK's Financial Conduct Authority (FCA) states 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 lawsuit from the regulator.
Negotiations with regulators: reality or PR?
The claim about negotiations with British authorities is confirmed. A moratorium is in effect in the High Court until August 25, and HTX is currently in talks with the FCA regarding illegal advertising. However, 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 ends in London.
My analysis: The situation looks like a classic example of regulatory pressure that Binance is using to tighten its compliance policy. Sun's statement is an attempt to minimize panic among users, but the lack of geographic details in Binance's official notice leaves room for interpretation. I recommend that HTX users in the EU and the UK closely monitor updates and withdraw funds in advance if they depend on liquidity through Binance. In the long term, such conflicts highlight the importance of decentralized solutions and a multi-exchange strategy to minimize risks.