Bybit this week warned users against sending funds to HTX, the exchange formerly known as Huobi, after the United Kingdom imposed sanctions on a Huobi-linked entity. The move is tightening compliance controls not just at Bybit but across the broader crypto trading infrastructure.
The warning
In a notice posted to its platform, Bybit told customers that transfers to HTX may be blocked or flagged under UK sanctions rules. The exchange didn't specify which entity triggered the alert, but it cited the UK's Office of Financial Sanctions Implementation (OFSI) as the authority behind the restrictions. Users who try to move crypto to HTX could see transactions frozen or face account reviews.
UK sanctions
The UK government recently added a Huobi-linked entity to its sanctions list, part of a broader crackdown on financial flows linked to sanctioned jurisdictions. The designation means any UK-connected exchange or user must avoid dealings with that entity — and compliance departments are now racing to update their screening systems. Bybit, which serves a global client base including UK users, is among the first to publicly flag the risk.
Broader impact
The sanctions are rippling beyond a single exchange. Other trading platforms are quietly updating their internal watchlists and transaction monitoring rules to catch any indirect exposure to the Huobi-linked entity. For HTX, the warning from a major peer like Bybit signals a growing isolation from compliant crypto infrastructure. The timing isn't great for HTX, which has been trying to rebuild its reputation under new branding after a series of governance scandals.
What remains unclear is how far UK regulators will push this — whether they target only the named entity or expect exchanges to block all traffic to HTX outright. Compliance teams across the industry are waiting for clearer guidance, but for now, the message is simple: don't send funds to HTX if you're dealing with UK-regulated services.
