A stark warning has been issued to investors regarding a digital asset platform operating under multiple names – HTS, HTX Cryptocurrency Exchange, HTX Exchange, Huobi Global Limited, Huobi Global S.A., and simply, Huobi. Authorities are alerting the public to potential risks associated with its operations.
This platform aggressively markets itself as a comprehensive cryptocurrency exchange, boasting services ranging from simple trading to complex derivatives, digital wallets, and blockchain technology access. Promotion occurs through a widespread online presence, including websites, social media channels, and dedicated mobile applications.
The core concern lies in the platform’s accessibility to users, including those within the Philippines, allowing them to easily establish accounts, deposit funds in both traditional and digital currencies, and engage in cryptocurrency and derivative trading. These actions, regulators believe, may legally qualify as the offering and sale of unregistered securities.
Investigations reveal a critical oversight: HTX is not registered as any form of corporation within the Philippines. Crucially, it lacks the necessary licenses or legal authority to offer, sell, or distribute securities to the public, nor is it authorized to function as a broker or dealer as defined by existing regulations.
Further compounding the issue, HTX has failed to register as a Crypto-Asset Service Provider (CASP), a mandatory step for any entity providing cryptocurrency-related services to residents. This requirement, applicable to both domestic and international companies, is designed to protect investors from fraud, financial losses, and illegal financial activities.
Authorities strongly advise the public to proceed with extreme caution when encountering unregistered online investment platforms and anyone representing them. The risks associated with unregulated platforms are substantial and potentially devastating.
The consequences for those involved in promoting or selling these unregistered platforms within the Philippines are severe. Penalties can include hefty fines reaching up to P5 million, imprisonment for up to 21 years, or a combination of both.
Liability extends beyond the platform itself, encompassing representatives, brokers, agents, promoters, and even influencers who actively contribute to its promotion. All parties involved could face legal repercussions under the existing code.
Despite attempts to solicit a response, representatives of HTX have not yet provided a statement regarding these allegations, leaving investors and regulators awaiting clarification.
