Sun refutes the scale of the block: Binance's restrictions on HTX only apply to the EU and the UK.
HTX founder Justin Sun has come to the defense of his exchange after Binance announced it would impose restrictions on operations with a number of platforms. According to him, the actual scale of the block is significantly narrower than it might seem at first glance: the measures affect exclusively users from the United Kingdom and the European Union. However, Binance's notification itself lacks any geographic reference, which creates room for misinterpretation and speculation.
Sun's statement and the context of the deal
Sun made his comment on Friday evening — just a few hours after Binance published a list of 11 platforms with which operations would be suspended for compliance review. The statement came against the backdrop of the approaching August 23 deadline, when the restrictions will take effect.
"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," Sun wrote on social media.
He also assured that affected clients can contact HTX support, and the exchange will help resolve issues on an individual basis. However, this position raises a number of questions, especially in light of regulatory data.
Where the statement diverges from the facts
Sun's claim that HTX does not operate in the UK looks questionable. The UK Financial Conduct Authority (FCA) reports that in 2023, the HTX website was visited 4.6 million times from the UK — the sixth-highest figure among all crypto companies in terms of British traffic. The exchange only closed registration for new British users after a lawsuit from the regulator.
Notably, the statement about negotiations with British authorities is confirmed. A moratorium is in effect at the High Court until August 25, and HTX is indeed in talks with the FCA regarding an unresolved advertising campaign. However, Sun did not specify which EU body the negotiations are being held with, leaving room for interpretation.
The timing is also extremely tight: Binance will cut off HTX on August 23 — two days before the moratorium ends in London. This adds tension to an already complicated situation.
My analysis: Sun's statement is an attempt to manage reputational damage and reassure HTX's global audience. However, discrepancies with FCA data and the lack of details regarding the EU suggest that the real picture may be more complex. I recommend HTX users in these regions to closely monitor developments and prepare for potential delays in withdrawing funds.