EU Includes Crypto Exchange HTX in Latest Russia Sanctions Over Financial Activity
EU Sanctions and Impact on HTX
By Elizabeth Howcroft
HTX Sanctioned by the European Union
PARIS, July 24 (Reuters) - Cryptocurrency exchange HTX was sanctioned by the European Union on Thursday as part of the bloc's latest effort to tighten pressure on Russia's financial system.
Background of HTX
HTX, formerly known as Huobi and founded in China, is one of the world's largest crypto platforms. Hong Kong-based billionaire Justin Sun bought a controlling stake in the exchange in 2022.
EU's List of Sanctioned Crypto Companies
It was included in a list of 18 companies providing crypto services which the EU said helped Russians evade sanctions. The list was made public on Friday. HTX did not immediately respond to a request for comment sent via email.
Details of the Latest EU Sanctions Package
The EU's latest sanctions package against Russia over its war in Ukraine targets banks, cryptocurrency networks, oil traders, the shadow fleet and Russian energy revenues.
Global Crackdown on Crypto and Financial Evasion
The sanctions are the latest sign of countries cracking down on the use of crypto to move funds outside the mainstream financial system.
Previous Sanctions and Industry Response
UK's Action Against HTX
HTX was first sanctioned by the UK in May as part of a package focusing on what London called "shadow financial systems" underpinning Russia's war economy. The designation sent shockwaves through the crypto industry as analysts said it was the first sanctioning of such a big exchange. The EU's sanctioning of HTX does not amount to a full designation and does not include an asset freeze.
HTX's Statement on Regulatory Compliance
Following the UK sanction earlier this year, a spokesperson for HTX said: "Regulatory compliance remains our absolute top priority at HTX. We proactively monitor and strictly adhere to regulatory frameworks in all jurisdictions where we operate globally, including the UK."
HTX's Leadership and Connections
HTX, which was founded in China in 2013, has referred to Sun as "advisor".
Justin Sun's Involvement in Crypto Ventures
Sun was one of the most prominent backers of World Liberty Financial, the crypto venture co-founded by U.S. President Donald Trump and his sons, although the relationship has since soured.
(Reporting by Elizabeth Howcroft in Paris, additional reporting by Julia Payne in Brussels and Kirstin Ridley in London; Editing by Louise Heavens)
