Singapore authorities have announced that access to the websites of two overseas online trading platforms, Octa and XM, will be blocked from 20 June following regulatory breaches. The decision was disclosed in a joint statement by the Singapore Police Force and the Monetary Authority of Singapore (MAS) on Friday, 6 June.
Both platforms were found to be offering financial trading services, including leveraged foreign exchange, commodities, indices, and equities trading, to Singapore-based customers without the required licences under the Securities and Futures Act (SFA). These activities constitute a direct contravention of the Act.
According to the authorities, a Capital Markets Services (CMS) licence is mandatory for any entity conducting business in capital market products within Singapore. Investigations revealed that Octa and XM not only provided unauthorised trading services but also actively marketed them to individuals in Singapore.
Octa is operated by Octa Markets and Uni Fin Invest, reportedly incorporated in the Union of Comoros and Mauritius, respectively. XM is operated by XM Global, which is purportedly based in Belize. None of these entities holds the necessary authorisation to deal in capital markets products and are therefore not permitted to offer such services to Singapore persons.
The joint statement emphasised that this prohibition applies even to entities based outside Singapore if their services are solicited to Singapore residents or if there is a significant number of Singapore-based users.
The content available on the platforms’ websites has been deemed prohibited under Singapore’s Internet Code of Practice. Consequently, from 20 June onwards, users in Singapore will be unable to access Octa and XM through local Internet Access Service Providers. Consumers with active accounts will lose access to these platforms via Singapore-based networks.
The MAS and the police have urged the public to engage only with licensed financial service providers listed in MAS’ Financial Institutions Directory. They warned that unregulated trading platforms, particularly those headquartered overseas, present a higher risk of fraud due to the lack of transparency and difficulty in verifying the legitimacy of their operations.
Such platforms often offer limited avenues for dispute resolution and may require customers to make payments via credit or debit cards, thereby increasing the risk of unauthorised transactions.
The authorities confirmed that they will continue coordinated efforts to restrict access to unlicensed foreign trading services.
In a statement to CNA on Monday, Octa acknowledged the regulatory requirements and affirmed its intention to comply. The platform stated that it is working towards establishing a legally compliant presence in the regions it serves and is engaging with regulators, legal counsel, and other relevant stakeholders to align with local legislation.
Octa added that it adheres to international policies designed to protect client funds and prevent illicit activities, and is currently prioritising the security of its Singaporean clients’ assets.
-CNA
