Featured image adapted from Vietnam Investment Review and Blocknomi for illustration purposes only.
octa xm breach regulations
Two overseas online trading platforms, Octa and XM, were found to have breached financial regulations.
According to a joint statement by the Singapore Police Force (SPF) and the Monetary Authority of Singapore (MAS) on Friday (6 June), access to these platforms will be blocked in Singapore.
The SPF has received information that both platforms offered services, including:
Investigations revealed that these services were offered and marketed to customers in Singapore without licences, breaching the Securities and Futures Act 2001 (SFA).
As such, access to these platforms will cease starting 20 June 2025.
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“Consumers with active accounts with Octa and XM will not be able to access their websites through Internet Access Service Providers based in Singapore,” authorities said.
Under the SFA, “a capital markets services licence is required for an entity to carry on business in the regulated activity of dealing in capital markets products,” the statement said.
This also includes the leveraging of foreign exchange trading as well.
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Two companies — Octa Markets Ltd and Uni Fin Invest — run the Octa trading platform, reportedly registered in the Union of Comoros and Mauritius, respectively.
XM Global Limited, reportedly incorporated in Belize, runs XM.
However, none of these companies has a licence from Singapore to offer financial services like trading. Hence, Singapore authorities do not allow them to run this kind of business in or for the country.
This rule also applies to companies that are based overseas. This includes:
“The SPF and MAS strongly encourage members of the public to deal only with regulated online trading platforms with valid capital markets services licenses, which are listed on MAS’ Financial Institutions Directory,” the statement said.
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Unregulated online trading platforms located outside Singapore pose a greater risk of fraud and unauthorised card transactions.
“The SPF will continue to work with MAS to block access to unregulated overseas online trading platforms,” authorities affirmed.
Also read: I bought an investment plan from a ‘friend’ & lost S$10K. Here’s what I learned.
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Featured image adapted from Vietnam Investment Review and Blocknomi for illustration purposes only.