Background

The Monetary Authority of Singapore (MAS) and the Singapore Police Force (SPF) will be blocking access to the websites of two online trading platforms, Octa and XM, with effect from 20 June 2025. Both platforms have been found to be operating in breach of the Securities and Futures Act 2001 (SFA).

Key Findings

• The 2 Platform Operators were identified:

• Octa – Operated by Octa Markets Ltd and Uni Fin Invest, purportedly incorporated in the Union of Comoros and Mauritius respectively
• XM – Operated by XM Global Limited, purportedly incorporated in Belize

• Unauthorised Regulated Activities: Octa and XM were found to be offering leveraged trading in foreign exchange, commodities, indices, and equities to Singapore-based customers, which are regulated activities, without a Capital Markets Services Licence.

Regulatory Breach

Under Securities and Futures Act Section 82, foreign entities must be licensed if

• The products or services are marketed to Singapore persons, or
• A substantial number of users are based in Singapore.

The websites also contain prohibited content under the Internet Code of Practice, which justifies access restrictions.

Public Warning

The SPF and MAS urge the public to only use MAS-licensed platforms (listed in the Financial Institutions Directory). Unregulated platforms pose high fraud risks, financial losses, and legal challenges due to their overseas base.

What’s Next?

Consumers are advised to:

• Immediately contact their brokers and advisers if they have exposure to Octa and XM, to close their accounts and recover their funds
• Use only MAS-regulated trading platforms (check via the Financial Institutions Directory)
• Be cautious when using other offshore trading platforms, especially those requesting card payments and with tax haven domicile.

How Can We Help?

Capital Governance supports firms by:

• Reviewing partnership/trading platform onboarding and other cross-border licensing risks
• Providing training on SFA and CMS obligations
• Auditing client solicitation and marketing practices

Contact Us today to discuss how we can provide the risk and compliance advisory solutions for you. Find out more here.