HTX (formerly known as Huobi) is one of the world's largest and most influential trading platforms for digital assets. Since its inception, it has established itself as a one-stop shop for trading a wide range of cryptocurrencies. The platform offers the opportunity to buy, sell, exchange and manage cryptocurrencies securely. Its reach, innovative strength and wide range of services make HTX an important player in the global crypto market.
HTX origin and development
HTX was originally founded in China in 2013 under the name Huobi. The aim was to offer a secure and user-friendly platform for trading Bitcoin and other cryptocurrencies. Within a few years, Huobi developed into one of Asia's leading crypto exchanges and steadily expanded into international markets. Following regulatory changes in China, the company moved its headquarters abroad and established locations and branches in Singapore, Turkey, Japan, South Korea and the USA, among others. In 2023, the company officially rebranded to HTX, with the X standing for "Exchange".
Trading offer and supported cryptocurrencies
HTX supports trading in hundreds of cryptocurrencies and digital assets. The most well-known include Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Litecoin (LTC) as well as numerous altcoins and new projects from the field of decentralised finance (DeFi) and non-fungible tokens (NFTs). Thanks to the large selection, both newcomers and experienced traders will find suitable trading pairs.
Spot and margin trading
On HTX, users can be active both on the classic spot market and in margin trading. While real coins are bought and sold in spot trading, margin and futures products offer the opportunity to trade with leverage and bet on rising or falling prices.
Derivatives and futures
A particular focus is on offering derivatives, including futures, perpetual contracts and options. These investment instruments allow traders to profit from price fluctuations without owning the underlying coin.
Security and regulation
The security of the assets under management is HTX's top priority. The platform relies on advanced security mechanisms, including cold and hot wallet solutions, two-factor authentication (2FA), anti-phishing features and strict risk management. Following several attacks on crypto exchanges in recent years, HTX is continuously investing in improving its defence mechanisms.
In terms of regulation, HTX works with authorities worldwide and strives to obtain licences in various jurisdictions. Compliance with strict regulations to protect users and combat money laundering (AML) and terrorist financing (KYC) is the focus.
Regulatory challenges for crypto exchanges
Cryptocurrencies and the associated trading platforms often operate in a legal grey area. The challenges for an international exchange such as HTX lie in complying with a wide range of regulations that vary from country to country. The most important challenges include
- Legal uncertainty: Many countries have not yet passed clear laws or regulations for cryptocurrencies and their platforms. This makes legal planning more difficult and increases the risk for investors and operators.
- Money laundering prevention (AML) and Know Your Customer (KYC): In order to prevent abuse through money laundering or terrorist financing, many exchanges are obliged to fulfil strict KYC
- Consumer protection: Due to the volatility and complexity of crypto investments, the protection of inexperienced investors is a key concern for many regulators.
- Tax aspects: The correct taxation of profits from crypto trading is another key issue. National tax authorities are increasingly requiring exchanges to record and pass on their users' tax data.
Regulatory situation of HTX in various countries
The regulation of HTX is highly dependent on the respective national laws. Some important markets are analysed below:
China
China, once a centre for crypto trading, has adopted a very restrictive stance in recent years. Cryptocurrency trading and exchanges are basically banned there. HTX has therefore moved its headquarters and many of its activities abroad. Nevertheless, the platform is still active for users outside China.
Singapore
Singapore has established itself as a crypto-friendly country, but also places clear requirements on the operators of exchanges. The Monetary Authority of Singapore (MAS) requires a licence and compliance with strict AML and KYC regulations. HTX endeavours to meet these requirements and strives for regulatory recognition.
European Union
With the introduction of the MiCA Regulation (Markets in Crypto-Assets) in the EU, the regulatory framework will become much clearer from 2025. Crypto exchanges such as HTX will then have to fulfil strict transparency, due diligence and capital requirements. Harmonisation within the EU facilitates cross-border trading, but also increases regulatory complexity.
United States
The US has a federal approach: while some states are crypto-friendly, others have very strict regulations. The SEC and CFTC oversee various aspects of crypto trading. HTX offers limited services in the US and works to comply with local requirements.
Measures for compliance with regulations at HTX
HTX has implemented a number of measures to fulfil the various regulatory requirements:
- KYC and AML processes: Customers must identify themselves before they can trade larger amounts or make withdrawals.
- Transparent communication: HTX provides regular information about regulatory changes and security measures.
- Cooperation with supervisory authorities: The exchange works together with regulators and takes part in consultations to support legislative processes.
- Technical security standards: Use of modern encryption technologies and multi-signature wallets.
- Internal control systems: Ongoing monitoring of transactions, audits and risk management.
Conclusion
The regulation of the HTX crypto exchange illustrates the complex dynamics and global challenges of the crypto market. It is advisable for customers to always inform themselves about the currently applicable laws and guidelines in their own country and only work with reputable trading platforms. HTX remains an example of the industry's adaptability and innovation - and shows that regulation and growth in the crypto sector and AML policies can be implemented. These measures require the identification and verification of users, which imposes additional technical and organisational requirements.
Data protection and cyber security: The security of customer data and the assets held is at the centre of attention. Regulatory authorities are increasingly demanding robust security measures to prevent hacks or data theft.
HTX - Intelligent help with problems
Users of cryptocurrency exchanges are regularly confronted with account blocking for various reasons. The most common reasons include, for example, lack of clarity regarding the origin of assets, missing evidence of the origin of funds or conspicuous links between wallets.
The Krypto Investigation GmbH maintains established contacts with the security departments of many cryptocurrency exchanges. Thanks to these relationships, we are able to process your concerns efficiently and in a targeted manner and bring about solutions.
