Justin Sun Disputes Scope of Binance’s Restrictions on HTX

HTX founder Justin Sun said Binance’s restrictions on his exchange apply only to users in the United Kingdom and the European Union. Binance’s own notice, posted hours earlier, names no country and addresses all users. The dispute comes as an August 23 cutoff date approaches.

What Sun Said in His Response

Sun posted his response on X late Friday, hours after Binance announced the restrictions.

“I’ve communicated with Binance, and it only involves Binance UK and EU users. Huobi itself does not conduct business in the UK or EU. Our settlement negotiations with the UK and EU regulatory authorities are already underway.”

Sun added that affected users can contact HTX customer service and that the exchange will help resolve individual cases. He did not name the EU regulator he said HTX is negotiating with, and he did not address why Binance’s own notice makes no reference to a regional limitation.

What Binance’s Notice Actually Says

Binance’s announcement restricted 11 platforms, including HTX, and did not limit the restrictions to any specific country or region. The notice said transactions involving the listed platforms may be held for compliance review after the restrictions take effect.

Binance addressed the notice to all of its users, not a regional subset, and gave no indication that the measures would apply differently depending on a user’s location.

That leaves a gap between Sun’s characterization of the restrictions and the text of Binance’s own notice. Binance has not issued a public statement narrowing the scope of the restrictions to UK and EU accounts, and the exchange has not responded publicly to Sun’s post.

The UK Regulatory Record Complicates the Claim

Sun’s claim that Huobi does not conduct business in the UK runs against the FCA’s own findings. The Financial Conduct Authority alleges HTX drew 4.6 million visits from UK users in 2023, a figure that ranked the exchange sixth among virtual asset firms accessed from Britain. HTX limited new UK sign-ups only after the FCA sued the exchange.

The FCA’s case against HTX centers on allegations of illegal financial promotion, specifically that the exchange advertised its services to UK consumers without the required regulatory approval. 

Even if HTX did not hold a UK license or maintain a formal UK entity, the FCA’s allegations concern the marketing and availability of HTX’s services to UK residents. The allegations focus on the promotion of those services, not the existence of a licensed local operation.

How the Two Deadlines Overlap

Public records offer more direct support for Sun’s claim of UK settlement talks than for his claim of EU talks. A High Court stay in the FCA’s case against HTX runs through August 25, and the exchange is negotiating with the regulator over the illegal advertising allegations. 

Sun’s statement about UK settlement talks is consistent with that ongoing process, which has been underway for several months.

The Binance restrictions take effect August 23, two days before the High Court stay in the FCA case expires on August 25. That sequencing means HTX faces the Binance cutoff before its UK legal matter reaches its next scheduled milestone on August 25.

What Remains Unverified

Sun did not address whether the Binance restrictions were tied to the FCA case, the broader compliance concerns Binance cited in its own notice, or a separate process altogether. The EU regulator he referenced in his post remains unidentified, and no EU authority has confirmed settlement talks with HTX.

Two elements of Sun’s statement lack independent confirmation. There is no public documentation supporting his claim that the Binance restrictions are limited to UK and EU users, since Binance’s notice contains no such limitation. 

There is also no confirmation from an EU regulator of active settlement negotiations with HTX, leaving that portion of Sun’s statement attributed to him alone until a regulator confirms or denies it.