Justin Sun reacted to Binance's restrictions on HTX: what is happening with user assets
HTX founder Justin Sun has issued an official statement regarding the exchange being placed on Binance's "blacklist." According to him, the restrictions imposed by the competitor affect exclusively users from the United Kingdom and the European Union. This is the first public reaction to Binance's decision, which was made public just a few hours earlier.
Sun emphasized that HTX does not conduct operational activities in the UK or the EU, and therefore the block is targeted in nature. He also stated that the exchange is already in active dialogue with regulators in these jurisdictions and is working toward a global resolution of the situation. Affected clients are advised to contact HTX support for individual resolution of issues.
Discrepancies in Wording and the Real Picture
Binance's official notice, however, contains no geographic specifications and is addressed to all users without exception. The exchange warned that operations with platforms on the list may be suspended for compliance checks. A total of 11 services were included in the list of restricted platforms.
Sun's statement about "inactivity" in Britain raises questions. According to data from the Financial Conduct Authority (FCA), in 2023 the HTX website was visited from the UK 4.6 million times, placing the platform sixth in British traffic among crypto companies. Registration of new users from that country was only restricted after a regulator lawsuit.
Interestingly, part of Sun's statements is confirmed. Negotiations with the FCA regarding illegal advertising are indeed underway, and a moratorium is in effect at the High Court of London until August 25. However, Sun did not specify which EU body the negotiations are being held with. The timing is extremely tense: Binance will disconnect HTX on August 23 — two days before the moratorium in London expires.
My analysis: This situation is a vivid example of how regulatory pressure in one region can trigger a chain reaction in the industry. Sun's public stance looks like an attempt to minimize reputational damage, but discrepancies between Binance's official data and his statements create additional uncertainty for investors. In the short term, this could intensify liquidity outflow from HTX, especially among institutional players sensitive to compliance risks.