Sun refutes the global nature of Binance's restrictions on HTX: analysis of statements and real risks
HTX founder Justin Sun rushed to reassure the market, stating that the restrictions imposed by Binance on his exchange apply exclusively to users in the UK and the European Union. However, an analysis of Binance's official notice and regulatory data paints a more complex picture than the one Sun is trying to present.
The comment came on Friday evening — just a few hours after Binance announced it had added HTX to its list of restricted platforms. In his statement, Sun emphasized that he had already held talks with Binance representatives and that the issue is local in nature.
"I 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," he wrote.
The HTX founder also added that affected users can contact the exchange's support service, and their issues will be resolved on a case-by-case basis.
Binance restrictions and HTX's position
This is where things get interesting. Binance's official notice contains no mention of geographic restrictions. The document is addressed to all users without exception and warns that transactions with restricted platforms may be suspended for compliance checks after the effective date. A total of 11 platforms fell under the restrictions, and HTX is one of them.
Sun's second claim that HTX does not operate in the UK also raises questions. The Financial Conduct Authority (FCA) states that in 2023, the HTX website was visited 4.6 million times from the UK — ranking sixth among all crypto companies in British traffic. HTX only closed registration for new British users after the regulator's lawsuit.
The claim about negotiations with British authorities, however, is confirmed. A moratorium is in effect at the High Court until August 25, and HTX is indeed in talks with the FCA regarding illegal advertising. However, Sun did not specify which EU body the negotiations are being held with.
The timeline is extremely tight: Binance will cut off HTX on August 23 — two days before the moratorium in London ends.
My assessment: It is telling that Binance did not single out specific jurisdictions in its notice — this is a deliberate move to maintain flexibility in applying measures. Sun is trying to minimize reputational damage, but the fact that HTX is forced to negotiate with the FCA over illegal advertising suggests the problem runs deeper than just "technical inconveniences." The market is currently watching developments closely, and any additional restrictions from Binance could seriously hit HTX's liquidity.