The Philippine Securities and Exchange Commission (SEC) has issued advisories against unregistered investment platforms HTS, also known as HTX Cryptocurrency Exchange, and its related entities.
According to the SEC, these platforms offer trading, derivatives, wallet, and blockchain-related services through their websites, social media, and mobile applications. They allow users, including those in the Philippines, to open accounts, deposit funds in fiat or digital assets, and trade cryptocurrencies online.
The SEC notes that such activities may constitute the offering and sale of securities under Section 3.1 of the Securities Regulation Code (SRC). The regulator emphasizes that HTS has not registered as a corporation, partnership, or one-person corporation in the Philippines and lacks the necessary license to offer securities to the public.
The SEC requires entities offering crypto-related services to Philippine residents to register as Crypto-Asset Service Providers (CASP). Failure to comply may result in fines of up to P5 million, imprisonment of up to 21 years, or both. The regulator warns investors and representatives to exercise caution when dealing with unregistered online investment platforms.