The UK's sanctions against HTX-related entities are spreading to a wider range of crypto services. Some users have reported that their past interactions with these addresses have resulted in them being re-tagged in compliance systems, affecting fund transfers and service usage.

On-chain investigator ZachXBT publicly criticized this practice, saying it drags ordinary users into it as well. He believes that compliance tools now not only target the sanctioned entities themselves, but also track addresses that have transacted with them.

Compliance system expands screening scope

Reports indicate that the affected entities include addresses associated with the sanctioned Huobi Global S.A. FixedFloat also stated that it has updated its compliance processes and suspended funds from Huobi.

Some community members say that some users have begun trying to transfer their assets to new wallets in an attempt to restore the blocked services. The crux of the controversy lies in whether historical transaction records should directly trigger a higher-risk flag.

HTX denies sanctions targeting trading platforms

HTX denied that the UK sanctions applied directly to its trading platform. The platform stated that the affected entity was Huobi Global S.A., registered in Panama, and that the two are not legally the same entity.

Meanwhile, the conflict between HTX and World Liberty Financial is also intensifying. WLFI recently froze on-chain addresses associated with HTX, and HTX subsequently delisted the USD1 stablecoin and converted user balances into USDT at a 1:1 ratio.

Regulatory pressure continues to accumulate

Earlier this year, the UK Financial Conduct Authority (FCA) initiated High Court proceedings against Huobi Global, accusing it of illegally promoting crypto services to UK consumers. With sanctions, freezes, and delistings following one after another, HTX continues to face increasing external pressure.