The Securities and Exchange Commission (SEC) issued a public advisory warning the public against investing in the cryptocurrency exchange HTX, formerly known as Huobi Global, citing its lack of registration and regulatory licenses.
Key Details
According to the Commission:
- HTX and its associated entities are not registered as a corporation in the Philippines,
- Further, the company does not possess the required Crypto-Asset Service Provider (CASP) authorization.
The regulator stated that HTX allows users to open accounts, deposit funds, and trade digital assets and derivatives through its web portal and mobile applications on Google Play and Apple App Store. The SEC noted that these activities constitute the unauthorized offering and selling of securities, a violation of Section 3.1 of the Securities Regulation Code (SRC).
Warnings for Promoters
The SEC advisory included a direct warning to individuals acting as salesmen, brokers, influencers, or promoters for HTX within the Philippines.
- The Commission stated that individuals soliciting investments for the platform may face criminal liability under Section 28 of the SRC.
- Pursuant to Section 73 of the SRC, penalties for these violations include fines of up to ₱5,000,000, imprisonment for a maximum of 21 years, or both.
In the same regulatory release, the SEC also flagged TAGALOGIX AI, an entity offering an unregistered investment scheme utilizing AI-managed capital, noting it lacks the mandatory registration and disclosure documentation required by the SRC.
Previous Regulatory Actions and CASP Rules
The advisory against HTX follows a series of enforcement actions by the SEC against offshore trading platforms operating without local licenses.
In late 2023, the SEC issued a similar public advisory against Binance, the world’s largest cryptocurrency exchange by volume. Following a transition period, the SEC coordinated with the National Telecommunications Commission (NTC) to block local internet service provider (ISP) access to Binance’s website and applications by early 2024. During that same period, the SEC also formally requested NTC blockades for other unlicensed international brokers, including MiTrade and OctaFX.
These regulatory actions fall under the SEC Rules on Crypto-Asset Service Providers (CASP Rules), which officially took effect on July 5, 2025. The regulatory framework explicitly requires all local and foreign entities offering crypto-asset services to the Philippine public to register with the Commission and obtain the appropriate licenses prior to operation.
Disclosure: AI has been used to assist in developing this article.
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This article is published on BitPinas: SEC Issues Advisory Against Unregistered Crypto Exchange HTX (Huobi)
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