Is HTX Legal in Nigeria? Is HTX Safe?
Choosing a trustworthy cryptocurrency exchange is crucial as it directly impacts the safety and security of your digital assets. The high risk of scams in this area necessitates extreme caution from users.
Our analysts have noticed a growing interest in HTX services among users in the Nigeria. However, questions remain regarding its safety and legal status within the Nigeria. Traders Union experts have addressed this concern by crafting a detailed review that explores both the pros and cons of using HTX.
So, let us tell you if HTX is allowed in the Nigeria and if it's safe to use for trading.
Is HTX legal in Nigeria? Does it have a license?
HTX is a regulated exchange that provides services in most countries worldwide, except for those under international sanctions, such as North Korea, Iran, Syria, Cuba, and regions like Crimea, Donetsk, and Luhansk. Restrictions may also apply based on requests from local regulators. We compared HTX's level of regulation with the top two global competitors and the top two competitors available in your country. Exchanges with Tier-1 regulation are generally considered the safest. However, HTX's safety level is also influenced by other factors outlined below.
| HTX | Bybit | MEXC | |
|---|---|---|---|
Government-regulated |
Yes |
Yes |
No |
Tier-1 regulation |
Yes |
Yes |
No |
U.S regulation |
No |
No |
No |
FCA U.K |
No |
No |
No |
AUSTRAC in Australia |
No |
No |
No |
DFSA in UAE |
No |
No |
No |
AMF in France |
No |
No |
No |
Spain |
No |
No |
No |
Germany |
No |
No |
No |
Singapore |
No |
No |
No |
MFSA in Malta |
No |
No |
No |
Seychelles |
No |
Yes |
No |
Other countries |
Lithuania, BVI |
Austria’s Financial Market Authority (FMA), Georgia, Kazakhstan |
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Open an account |
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Other HTX Security Factors to Consider
| HTX | Bybit | MEXC | |
|---|---|---|---|
2FA |
Yes |
Yes |
Yes |
Verification (KYC) |
Yes |
Yes |
Yes |
Successful hacks |
Yes |
Yes |
No |
Cold wallet storage |
Yes |
Yes |
Yes |
Investor protection fund |
Yes |
Yes |
No |
Open an account |
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Short summary about the HTX exchange
HTX (Huobi) (pronounced “haw-be”; with “huo” meaning “hot” or “popular” and “bi” meaning “coin” or “currency” = “popular currency”) is a global cryptocurrency exchange that was founded in China but is headquartered in Seychelles. The work of the international company HTX started in 2013. The cryptocurrency exchange allows traders to carry out transactions with a variety of assets, including about 300 currency pairs and cross rates. There is no information on whether this company is licensed and the exchange hasn’t received any awards during its brief activity. More about the safety of cooperation with HTX.
| 💰 Account currency: | Account replenishment is possible in all currencies and cryptocurrencies provided by the exchange |
| 🚀 Minimum deposit: | 1 USDT |
| ⚖️ Leverage: | Up to 1:200 |
| 💱 Spread: | No |
| 🔧 Instruments: | Cross rates, currency pairs |
| 💹 Margin Call / Stop Out: | No |
HTX Pros and Cons
👍 HTX Pros:
•a vast array of trading instruments;
•the minimum level is US$1;
•the site is integrated for clients worldwide.
👎 HTX Cons:
•lacks a demo account;
•few ways to contact support;
•the activities of the cryptocurrency exchange are not licensed or regulated by any authority;
•clients' financial assets are not protected by segregated accounts or compensation payments in the event of an exchange liquidation;
•there are no training materials or courses for users on its website.
Rules and Regulation
Licensing in Nigeria
Nigeria's position on cryptocurrency has recently changed, but regulations are still being formulated:
- Nigeria doesn't have a single entity specifically responsible for issuing crypto licenses. The situation is unclear.
- Nigerian Securities and Exchange Commission (SEC) might be responsible for regulating crypto exchanges and offerings considered securities. However, the exact requirements and application process remain unclear.
Investor protection in Nigeria
The absence of a clear regulatory framework means there are no formal investor protection mechanisms established specifically for cryptocurrency.
Taxation in Nigeria
Cryptocurrency is not recognized as a legal payment method in Nigeria. The taxation of crypto gains is still under development.
Do I recommend using HTX in the Nigeria?
The HTX cryptocurrency exchange can certainly be recommended for traders from Nigeria. The platform is well suited for trading cryptocurrencies. Despite that the company does not have a financial license, as this kind of activity is not subject to licensing in Nigeria in general, the exchange has a good reputation. The company’s team has developed reliable account protection and closely monitors the security of the platform.
FAQ
Can I work with crypto exchanges considering that they don’t have a license in Nigeria?
The fact that a crypto exchange does not have a license doesn’t mean that traders from Nigeria will have problems while working with it. Cryptocurrency exchanges are not subject to licensing in many countries, while there are many exchanges with good reputation. Assess the available information about the exchange and check its reputation.
What security methods for account protection do crypto exchanges employ?
Cryptocurrency exchanges may offer various security methods. These include the two-factor authentication, first and foremost, and also such methods as a security question, additional passwords, etc.
Can an exchange that has had a security-related incident in the past be trusted?
You need to check whether such incidents were regular. If it was one episode several years ago, while the reputation of the exchange is good, you can work with such an exchange.
Should I work with an exchange if I have doubts about its reputation?
No. Always choose the cryptocurrency exchanges that have a good reputation.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.