SEC Warns HTX Operators Face 21-Year Prison Term
Philippine regulators issued a warning against HTX cryptocurrency exchange on April 13 for operating without the required CASP registration. Anyone selling or promoting the platform in the Philippines faces up to 21 years imprisonment and fines reaching ₱5,231,425 ($87,000).
Key Takeaway
Philippine regulators are enforcing CASP rules with prison time, not just fines — even foreign platforms must register.
The Philippine Securities and Exchange Commission flagged HTX cryptocurrency exchange for offering unregistered trading services to Filipino users, exposing promoters to criminal penalties of up to 21 years in prison and fines reaching ₱5,231,425 ($87,000).
HTX — also known as Huobi Global — lacks registration as a corporation or partnership in the Philippines and has no license to offer, sell, or distribute securities under Section 28 of the Securities Regulation Code. The platform presents itself as a digital asset exchange offering trading, derivatives, wallet, and blockchain-related services.
HTX allows users in the Philippines to open accounts, deposit funds in fiat or digital assets, and trade cryptocurrencies and derivatives online without proper authorization. The SEC said these activities may constitute the offering and sale of securities under Section 3.1 of the SRC.
The exchange has also failed to register as a Crypto-Asset Service Provider under SEC rules that apply to both local and foreign firms operating in the country. CASP registration became mandatory for platforms offering crypto services to Philippine residents.
Penalties apply to anyone who sells or promotes unregistered platforms in the Philippines, including through online channels. The SEC published the advisory on April 13.
🇵🇭 Filipino Impact
Filipino traders using HTX operate on an unregistered platform that could face enforcement action at any time. PDAX and Coins.ph offer legal trading options with regulatory protection.
This article was written based on reporting from Bworldonline.
