Svmuu reported that on-chain detective ZachXBT stated on platform X that the UK's recent inclusion of HTX in crypto sanctions lists constitutes overregulation.
ZachXBT pointed out that, compared to previously sanctioned entities such as Huione, Blender, and Hydra, HTX has a large number of retail users in Asia. Placing HTX on the sanctions list has linked numerous legitimate on-chain addresses to the sanctions regime, worsening the issue of address contamination and gradually rendering the "risk" tag itself meaningless. He noted that while tracking on-chain cases, he has already been forced to ignore tags related to the sanctions category.
Furthermore, ZachXBT also criticized UK regulators for failing to uncover a money laundering case involving $1.25 billion, arguing that this aligns with long-standing issues in how the UK handles crypto-related cases.