SEC red flags crypto platform Hnzllq
The Securities and Exchange Commission (SEC) is warning the public against investing in Hnzllq Exchange, saying the cryptocurrency platform was not authorized to solicit investments in the Philippines.
In an advisory, the SEC said Hnzllq presented itself as a digital asset trading and cryptocurrency exchange platform offering crypto trading services, derivatives trading and other blockchain-related financial products.
The platform also claimed to provide access to global digital asset markets and positioned itself as an “intelligent gateway” integrating artificial intelligence with digital asset management, cryptocurrencies, tokenized real-world assets and decentralized finance opportunities.
According to the SEC, Hnzllq allowed users, including Philippine-based investors, to open accounts, deposit funds and participate in cryptocurrency and derivative trading through its online platform.
The regulator said certain individuals acting as agents, facilitators and group administrators were also using the platform’s mobile application, website and social media pages to engage local investors.
The SEC added that investors were allegedly recruited through online group chats, where they received trading instructions and were encouraged to participate in investment schemes such as initial exchange offerings and leveraged trading strategies.
“Investors execute trades based on specific instructions from said agents, indicating reliance on the efforts of others,” the advisory read.
However, the SEC said Hnzllq was not registered as a corporation, partnership or one-person corporation in the Philippines. It also lacked the license and authority to offer, sell or distribute securities to the public or act as a broker or dealer under the Securities Regulation Code (SRC).
The regulator likewise noted that the platform had not secured registration or authorization as a Crypto-Asset Service Provider (CASP).
Under the SEC’s CASP Rules, which took effect on July 5, 2025, entities offering crypto-asset services to persons in the Philippines are required to register with the commission and secure the necessary licenses before operating.
The SEC said the rules were intended to protect investors from risks such as fraud, financial losses and illicit financial activities tied to unregistered crypto operations.
The Commission urged the public not to invest, or to stop investing, in Hnzllq and avoid dealing with individuals promoting the platform.
The SEC also warned that individuals acting as salesmen, brokers, promoters, influencers or recruiters for Hnzllq could face criminal liability under the SRC, with penalties of up to P5 million in fines, imprisonment of up to 21 years, or both.
