After the UK sanctions against Huobi Global S.A., the exchange Bybit began to treat any transfers related to HTX more cautiously. Users were warned that such deposits and withdrawals may now be subject to additional AML filters, internal compliance, and risk assessment systems.
The message appeared almost immediately after news of sanctions against the operator of HTX.
Essentially, Bybit became one of the first major exchanges to publicly show that it does not want unnecessary contact with HTX amid increasing pressure from regulators.
Users were specifically advised not to send funds through wallets associated with HTX and to pay closer attention to local legal requirements.
Bybit Begins to Restrict Transfers Related to HTX
Bybit has effectively started distancing itself from transfers related to HTX. The exchange warned users that such transactions may now be subject to additional AML checks, internal compliance, and risk assessment procedures.
See Also: The UK Imposed Sanctions on Huobi and the Issuer of the Ruble Stablecoin Due to Ties With Russian Crypto Networks
Bybit specifically emphasized that all activity on the platform must comply with local laws and the exchange’s own rules.
Against this backdrop, HTX tried to draw a clear line between the sanctioned company Huobi Global S.A. and the crypto exchange HTX itself.
“It is important to understand that Huobi Global S.A. and the online platform HTX are different entities,” representatives of the exchange said.
HTX believes that sanctions against Huobi Global S.A. should not affect the day-to-day operations of the platform.
A similar position was taken by advisor Huobi Global Justin Sun. According to him, the team intends to promptly interact with UK authorities and resolve any issues that arise.
Experts Warn of Stablecoin Freeze Risks
CoinKit CEO Vitaly Gorbenko said that the situation around HTX could become a dangerous precedent for the entire crypto market. According to him, the most concerning part of the sanctions is the possible asset freeze.
“This means that stablecoin issuers could theoretically start blocking assets. And this already looks alarming, especially considering that wallets associated with HTX hold more than $100 million in USDT,” Gorbenko noted.
According to Arkham, HTX currently holds more than $74 million in USDT. The stablecoin is among the top ten largest assets on the exchange by reserve volume.
HTX reserves in USDT. Source: Arkham
The head of analytics at AML provider SHARD Fyodor Ivanov noted that the UK sanctions formally only apply to residents and companies from the United Kingdom.
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But in his opinion, banks and stablecoin issuers around the world will still begin to scrutinize any operations related to HTX.
Ivanov reminded that Tether has already frozen USDT at addresses under suspicion. Previously, the company also took action against the Russian exchange Garantex.
According to him, AML tags began to spread through compliance systems within just a few hours after the UK sanctions. This further accelerates the division of the crypto market into clean and sanctioned platforms.
Additional pressure may also arise after the launch of new European AML rules, which are expected to take effect in 2027.
Currently, the market’s attention is focused on whether Tether or Circle will take any action regarding HTX assets. According to various estimates, wallets associated with the exchange hold more than $100 million in USDT.
For Bybit itself, this story also appears to be part of a broader trend toward strengthening compliance and distancing from platforms exposed to sanctions risks.
