WazirX Unleashes Comeback: FCA Targets HTX Amidst Global Crypto Regulations

The global cryptocurrency landscape constantly shifts. Recently, significant developments have captured market attention. Indian exchange WazirX has notably ended its prolonged shutdown. This signals a return to operations after a major security incident. Meanwhile, regulatory bodies worldwide are tightening their grip. The UK’s Financial Conduct Authority (FCA) is actively pursuing unregistered crypto exchanges. This highlights a broader trend towards increased oversight. Additionally, the adoption of Bitcoin Treasuries by corporations continues to grow, reflecting evolving investment strategies.

WazirX’s Resilient Return After Major Hack

Indian crypto exchange WazirX is officially back in business. The platform announced its reopening on October 24, following a significant hack in 2024. This event led to a year-long hiatus. CEO Nischal Shetty confirmed the platform would initially offer zero-fee trading for 30 days. Furthermore, WazirX plans to reintroduce trading pairs with the Indian rupee. Tether’s USDt (USDT) stablecoin will be the first. This move marks a crucial step in its recovery.

The exchange faced a severe challenge last summer. The Lazarus Group, linked to the North Korean government, stole approximately $240 million in crypto. Before the attack, WazirX held about $500 million in assets. Consequently, hackers absconded with nearly half of the platform’s holdings. WazirX, while serving an Indian client base, underwent a comprehensive restructuring. Its Singapore-based parent company, Zettai, managed this process through the Singapore High Court. After several rejected proposals, the court approved a final restructuring program on October 13. However, not all creditors are satisfied. WazirX remains in litigation with Indian crypto app CoinSwitch. CoinSwitch sued WazirX for failing to recover its lost funds. The Bombay High Court recently upheld CoinSwitch’s $5.4-million claim. This demonstrates the ongoing complexities of post-hack recovery.

FCA Intensifies Scrutiny: HTX Faces Legal Action

The UK’s markets regulator, the FCA, has taken decisive action. It filed a lawsuit against crypto exchange HTX (formerly Huobi) on October 22. Bloomberg reports that Justin Sun owns the exchange, and he also serves as a global adviser. The FCA alleges that HTX violated the UK’s financial promotions regime. Specifically, it claims HTX lacks the necessary license to operate within the country. The action, initiated in the London High Court, underscores the FCA’s commitment. It aims to protect consumers and maintain the integrity of UK financial markets. HTX has not yet issued any public statements regarding these accusations.

The FCA’s targeting of HTX is part of a broader crackdown. The agency has issued numerous complaints against unregistered exchanges. These companies service clients in the UK without proper authorization. This increased scrutiny follows a recent rule change. The FCA now permits crypto exchange-traded notes, indicating market maturation. Nonetheless, it demands strict adherence to regulatory frameworks. This shows the UK’s firm stance on crypto compliance.

Global Crypto Regulations Tighten Across Borders

Regulatory environments for cryptocurrency are evolving rapidly worldwide. Russia’s Ministry of Finance is preparing extensive new Crypto Regulations. These measures include laws governing cross-border crypto payments. Finance Minister Anton Siluanov announced these plans after a strategic session. Prime Minister Mikhail Mishustin oversaw the session. Interfax reported Siluanov’s observations. He noted crypto’s use for transferring money out of Russia and paying for imports. The central bank introduced an experimental regime last year. This allows cryptocurrencies for import payments. However, all other forms of crypto payments remain banned in Russia. Siluanov stated an agreement with the central bank. This aims to “bring order” to financial markets and strengthen oversight.

Russia has employed various methods to circumvent wartime sanctions. Crypto has played a role in these efforts. Just two days after Russia’s strategic session, the EU passed its 19th package of sanctions. This package included significant sanctions on the Russian state-backed stablecoin A7A5. The European Council explicitly stated, “The stablecoin A7A5 … has emerged as a prominent tool for financing activities supporting the war of aggression.” Consequently, the EU issued sanctions. These target the developer, issuer, and operator of a platform recording significant A7A5 volumes. All transactions involving A7A5 are now prohibited within the EU. These actions highlight increasing international efforts to control crypto’s use in illicit activities.

The Growing Popularity of Bitcoin Treasuries

Despite some company losses, Bitcoin Treasuries continue to gain traction. In the US, Hyperscale Data, a data services company, recently made a notable allocation. It assigned $60 million for Bitcoin on its balance sheet. This valuation is based on October 19 prices. Significantly, this Bitcoin treasury represents nearly 66% of the company’s total market valuation. Its subsidiary, Sentinum, holds about $16 million of Bitcoin. Hyperscale has also earmarked an additional $43 million in cash. This is specifically for Sentinum to acquire more Bitcoin. Executive Chairman Milton Ault commented on their strategy. He stated, “Our disciplined dollar-cost averaging strategy continues to prove its strength … Volatility in Bitcoin’s price has provided meaningful opportunities to build our position methodically and at favorable long-term averages.”

The enthusiasm for corporate Bitcoin holdings is growing. Michael Saylor, a prominent Bitcoin maximalist and chairman of MicroStrategy, fuels much of this trend. MicroStrategy is the world’s largest publicly traded holder of Bitcoin. It has achieved resounding success with its Bitcoin purchases. The top 10 Bitcoin treasury companies include MicroStrategy, Coinbase, and the Trump family media company. However, not all companies have been equally fortunate. Market fluctuations have sometimes pushed the market value of some firms below their Bitcoin holdings. Sustained periods of this can force companies to liquidate their assets. KindlyMD CEO David Bailey suggests that the hype around Bitcoin treasuries is cooling. Investors are becoming more adept at identifying less sound investment strategies. This nuanced view underscores the evolving landscape of corporate crypto adoption.

Navigating a Dynamic Crypto Future

The cryptocurrency world remains a place of constant evolution. We see both recovery and increased regulation. WazirX’s return demonstrates resilience in the face of adversity. Simultaneously, the FCA‘s actions against HTX reinforce regulatory vigilance. Governments worldwide, like Russia and the EU, are actively shaping the legal framework for digital assets. Furthermore, corporate adoption of Bitcoin Treasuries signals a maturing market. These diverse developments collectively paint a picture of a sector that is both innovative and increasingly scrutinized. Navigating this complex environment requires continuous awareness and adaptability from all participants.