By Kirstin Ridley and Elizabeth Howcroft

LONDON, Aug 13 (Reuters) – Britain’s financial regulator and HTX, a cryptocurrency exchange under UK and European Union sanctions, are in talks to settle allegations that the group is illegally promoting crypto ​services in the UK, court documents show.

The Financial Conduct Authority last October ‌sued HTX — formerly known as Huobi — one of the world’s largest crypto platforms, in which Chinese billionaire Justin Sun bought a controlling stake in 2022.

But London’s High Court has halted proceedings to give both sides two months until late August to settle their dispute, the filings show.

The lawsuit — the ‌first ​FCA case against a crypto firm over marketing to ⁠UK consumers…