Binance blocks HTX transfers for 11 exchanges as EU sanctions bite

Binance will halt deposits and withdrawals involving HTX and 10 other crypto platforms effective Aug. 23, citing EU and UK sanctions compliance, while TRON founder Justin Sun disputes the scope of the restrictions.

"Binance is required to adhere to the regulatory requirements in the jurisdictions in which it operates," the exchange said in its announcement. "These measures are necessary to meet those requirements and to help maintain a safe and secure environment for our users and their assets."

The restrictions trace to the EU's 21st Russia sanctions package, which named HTX (Huobi Global SA) and other entities for allegedly helping Russia circumvent sanctions. The UK separately sanctioned HTX in May for alleged connections to Russia and for publishing unlawful financial promotions. TRM Labs claims the exchange had been rotating hot wallets and funding addresses to evade UK sanctions screening. The ETH order book on HTX has visibly thinned as the Aug. 23 deadline approaches, with liquidity providers pulling back in anticipation of the cutoff.

The cutoff closes arbitrage channels between Binance and HTX, potentially causing ETH price divergence across exchanges. Sun said HTX does not operate in the UK or EU and that settlement talks with regulators are under way, but Binance's notice sets no such regional limit.

The scope dispute

Sun said on X on Aug. 14 that he is in contact with Binance and that the issue affects only the exchange's UK and EU users. He added that HTX does not operate in those jurisdictions and that settlement talks with regulators are already under way. If any users are affected during that process, HTX will work to resolve the issue with them, he said.

Binance's own announcement does not specify a regional limit. The exchange said users should refrain from sending or receiving funds through Binance that involve the 16 named entities after their specific cutoff date, after which transactions will trigger a compliance review that may result in wallet restrictions.

Sanctions timeline and market impact

The EU sanctioned HTX in July for allegedly providing financial services for A7 Limited Liability Company, a Russia-linked cross-border payments firm connected to A7 Nigeria and A7 Africa. Restrictions on Shelbit and Aban Tether Exchange took effect Aug. 7, while A7 Nigeria, A7 Africa and PilotFinance Ltd. were cut off Aug. 13. The Aug. 23 list expands to include Rapira, Aifory Pro, ABCeX, WhiteBird, NoOnecrypto, Tradex, Monease, BitPapa, Exnode/Exnode Pay, HTX and EXMO Ltd.

Nearly every firm blocked by Binance, outside of Shelbit and Aban, was also named in the EU's updated sanctions list. The EU accused these entities of "frustrating" restrictions related to Russia's invasion of Ukraine. Shelbit and Aban were sanctioned by the U.S. Treasury Department over alleged Iran-linked money laundering and sanctions evasion.

Multiple major exchanges, including OKX, Bybit and Bitget, have been adjusting their compliance policies in response to the same evolving regulatory environment since May 2026. HTX, formerly known as Huobi, has faced regulatory headwinds since Justin Sun acquired a major stake in the exchange in 2022 through an investment vehicle.

The thinning ETH book on HTX means large sell orders could move prices more dramatically than on deeper exchanges. If Binance users cannot transfer assets to or from HTX, the arbitrage channel closes and price dislocations become harder to correct. The next date to watch is Aug. 23, when Binance's restrictions formally take effect, and traders holding significant positions on HTX, particularly in ETH, face the most immediate impact.

This article is for informational purposes only and does not constitute investment advice.