FCA’s crackdown on HTX signals a decisive shift towards stricter UK crypto regulation

The Financial Conduct Authority’s move against HTX has become a defining moment for the UK’s crypto sector, according to Zumo founder and chief executive Nick Jones, who says the regulator is now showing it is willing to act decisively against firms marketing into Britain from overseas.

The FCA launched legal proceedings against HTX, formerly Huobi, in October 2025 over alleged breaches of UK financial promotion rules, targeting HTX Global S.A., a Panama-registered company, and unnamed parties linked to the exchange. The regulator later won permission to serve the claim outside the jurisdiction, underlining how far it is prepared to push enforcement in crypto, even where firms are based abroad.

For Jones, the case marks a turning point. He argues that the UK is moving into a phase in which offshore providers can no longer assume they are beyond the reach of domestic rules if they target British consumers. In his view, the FCA’s action sends a clear message: marketing into the UK must comply with local standards, regardless of where a business is headquartered.

That stance comes at a crucial time for the market. The FCA’s crypto authorisation gateway is due to open on 30 September 2026, with the full regime expected to land in October 2027. Jones said the intervening period will be decisive for firms trying to establish a compliant UK presence, particularly those that have grown accustomed to operating under looser oversight elsewhere.

He also believes the UK’s approach differs sharply from the European Union’s Markets in Crypto-Assets framework, which creates a bespoke rulebook for digital assets. By contrast, the UK has opted to extend existing financial regulation to crypto businesses. Jones argues that this signals a policy belief that digital assets can sit alongside traditional money in the future financial system.

At the same time, he says the FCA has not relied solely on enforcement. The regulator’s Sprint sessions have given industry participants a chance to shape the incoming framework, while its Pre-Application Support Service offers firms the opportunity to discuss business models before the gateway opens. Jones said that combination of support and sanctions is exactly what firms should expect as the UK regime hardens.

The biggest weak point, he said, remains operational readiness. Historically, many crypto businesses have struggled with anti-money laundering and know-your-customer controls, treating registration as a compliance formality rather than part of a durable operating model. The HTX case, he added, also highlights the risks of advertising and social media campaigns that fail to carry the required warnings.

Zumo’s own UK Regulatory Preparedness Assessment suggests the industry still has a long way to go. In early findings from the survey, which remains open until 30 September, seven in 10 firms said losing access to the UK market was a key risk of the incoming regime, yet only one in 10 felt fully prepared for the new rules. Jones said that showed “there is work to be done”.

Despite that, he said interest from larger institutions has risen sharply over the summer. Inbound partnership enquiries have increased from UK-based and overseas financial firms that had previously held back because of uncertainty over regulation and counterparty risk. Many, he said, have already tested products in other markets and are now waiting for a clearer UK path.

For Zumo, the opportunity lies in building the infrastructure needed for that next stage. Jones said the industry needs custody arrangements and multiple liquidity providers that meet UK standards and reduce dependence on single points of failure. In his view, that is the bridge between consumer trust, regulatory oversight and international competitiveness.

Looking beyond Britain, Jones said the outlook for the UK is promising because the FCA has created a more phased and predictable route to compliance than some other jurisdictions. He pointed to delays and uneven implementation in the US and to differing interpretations of MiCA across Europe. He also drew a comparison with Abu Dhabi Global Market’s virtual asset framework, which he sees as broadly aligned with the UK’s attempt to bring crypto into mainstream financial services regulation.

His conclusion is that the UK could emerge as a meaningful hub for compliant digital asset business, provided it can connect with the right international partners. For now, though, the HTX case has made one thing plain: the era of relaxed offshore marketing to UK users is ending.