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Executive Summary

Huobi HTX has introduced a C2C Verified Zone with a 0 freeze + 100% full compensation mechanism, aiming to resolve last mile issues in crypto on-ramping and off-ramping, significantly enhancing user trust and industry adoption.

Deconstructing the Financial Mechanics

Huobi HTX has launched an industry-first 0 freeze + 100% full compensation dual insurance mechanism for its C2C platform. This mechanism guarantees that if a user’s funds are judicially frozen due to a merchant’s violation, the platform will provide full compensation for losses. This is structured as a dual guarantee, where the advertiser and the platform each contribute 50% of the compensation, up to a maximum of 10,000 USDT per transaction. This initiative directly addresses the prevalent issue of bank card freezes linked to illicit financial activities, often referred to as black money, which has historically hindered mass adoption of cryptocurrencies.

Business Strategy and Market Positioning

This strategic move by Huobi HTX marks a departure from traditional C2C platforms that primarily rely on users for risk assessment and dispute resolution. The platform has adopted a proactive defense paradigm through rigorous merchant screening and robust risk control measures. The C2C Selection Station, launched in April 2025, has notably maintained a 0 freeze record for five consecutive months. This achievement is attributed to strict qualification reviews and a sufficient accumulation period for merchants. Furthermore, Huobi HTX has reinforced its commitment through a Special Action Against Violating Merchants initiative, resulting in the expulsion of 57 merchants and the freezing of 310,000 USDT in deposits from non-compliant entities. The platform also offers 0 handling fees for both users and merchants, signaling a focus on user experience and market liquidity rather than commercializing deposit and withdrawal services. This redefines platform responsibility, shifting from user self-protection to a comprehensive platform guarantee model.

Broader Market Implications

Huobi HTX’s enhanced C2C security framework is poised to significantly impact the broader Web3 ecosystem. By mitigating key financial risks associated with C2C transactions, the initiative fosters increased user confidence, which is crucial for facilitating greater mainstream adoption of cryptocurrencies. This proactive stance on security and accountability sets a new industry standard for C2C platforms. The move aligns with the tightening global regulatory landscape, as evidenced by increased scrutiny from bodies such as FinCEN regarding illicit activities involving virtual currency kiosks, and the ongoing implementation of stronger Anti-Money Laundering (AML) and Financial Action Task Force (FATF) Travel Rule standards. By providing a more secure and regulated environment, Huobi HTX contributes to the evolution of C2C markets towards greater transparency and integrity, which is essential for sustainable growth in the digital asset space.