New EU Sanctions to Sever Ties with HTX Exchange

The European Union is tightening its regulatory grip on the crypto landscape by implementing strict sanctions against the HTX exchange, formerly known as Huobi Global. Starting August 23, 2026, transactions with this entity will be prohibited under EU jurisdiction, forcing users and companies to settle their affairs or face complex bureaucratic hurdles to retrieve their assets. This move represents a significant escalation in the bloc's efforts to monitor and restrict dealings with specific offshore financial entities.

The Scope of the Transaction Ban

The restriction stems from Council Regulation (EU) 2026/1848, which specifically lists "HTX (HUOBI GLOBAL SA)" as a restricted entity under its annexes. The ban is comprehensive, covering both direct and indirect transactions, as well as dealings with mirror entities or service providers acting on HTX's behalf. Critically, these rules apply to all EU territory, EU nationals regardless of their location, and any company formed under the laws of a member state. While HTX’s current user agreement already blocks active EU residents, the new law captures residual accounts, covered counterparties, and EU citizens living abroad.

Navigating the Post-Cutoff Withdrawal Process

For individuals who fail to exit the exchange before the August deadline, a narrow and discretionary authorization process provides a final path to recovery. Eligible persons, including EU, EEA, and Swiss nationals or residents, may apply to national authorities for permission to withdraw funds and terminate their contracts. However, this window is tight: requests must be filed within three months of the ban's commencement, and the resulting authorization is only valid for a maximum of ninety days. Furthermore, the regulation mandates that withdrawn funds must be moved to EU-regulated financial institutions, leaving the status of transfers to self-custody wallets notably uncertain.