SEC warns against unregistered HTX investment platform

THE Securities and Exchange Commission (SEC) has issued advisories against HTS and its related entities, warning investors that these platforms have been offering securities without the required registration or license.

In a notice, the corporate regulator said HTS — also known as HTX Cryptocurrency Exchange, HTX Exchange, Huobi Global Limited, Huobi Global S.A., and Huobi — presents itself as a digital asset exchange offering trading, derivatives, wallet, and blockchain-related services. It promotes its platform through its website, social media, and mobile applications.

The SEC said these platforms allow users, including those in the Philippines, to open accounts, deposit funds in fiat or digital assets, and trade cryptocurrencies and derivatives online. Such activities may constitute the offering and sale of securities under Section 3.1 of the Securities Regulation Code (SRC).

“Records of the Commission show that HTX is not registered as a corporation, partnership, or one-person corporation in the Philippines and does not have the necessary license and/or authority to offer, sell, or distribute securities to the public, or to act as a broker or dealer in securities under section 28 of the SRC,” the SEC said.

The regulator added that HTX has not registered as a Crypto-Asset Service Provider (CASP), a requirement under SEC rules for entities offering crypto-related services to Philippine residents. The rules apply to both local and foreign firms and aim to mitigate risks such as fraud, financial losses, and illicit financial activity.

The Commission advised the public to exercise caution when dealing with unregistered online investment platforms and their representatives.

It warned that those who sell or promote these platforms in the Philippines, including through online channels, may face fines of up to P5 million, imprisonment of up to 21 years, or both.

Representatives, brokers, agents, promoters, influencers, or enablers may also be held liable under the code, the regulator said.

HTX did not immediately respond to an e-mail seeking comment. — Alexandria Grace C. Magno