The Philippines’ regulator recently issued a warning
against XM, the online trading platform for forex and crypto CFDs, for engaging
in unauthorized securities trading activities in the country. According to an advisory dated April 4 by the
Philippines Securities and Exchange Commission mentioned that the company is
“not authorized to sell or offer securities to the public in the Philippines.”
According to the regulator, XM has more than 1,000
trading instruments, 24/7 trading of Crypto CFDs, leverage up to 1000:1, and
bonuses of up to $10,500 US dollars. Moreover, it features a copy trading
feature, allowing users to mimic the trades of popular traders.
However, an investigation by the SEC revealed that XM
has been running promotional campaigns on various social media platforms to
lure investors, including Filipinos, into trading activities on its platform.
“Based on the commission’s database, the operator of the
platform XM is not registered as a
corporation in the Philippines and
operates without the
necessary license and/or authority to sell
or offer any
form of securities
as defined under
section 3.1 of
the securities regulation code (SRC),
to engage in the business of buying or selling securities or as a broker or
dealer as provided undersection 28 of the SRC, or to create or operate an
exchange for the buying and selling of securities as provided under section 32
of the SRC.” The sec wrote.
According to the Philippines’ regulations, securities
being offered to the public must be registered with the SEC, issued by a
registered corporation or licensed dealer, and the issuer must possess a
secondary license to sell or offer securities. In light of these findings, the SEC has warned that
individuals acting as salesmen, brokers, dealers, promoters, or recruiters for
XM within the Philippines may face criminal liability.
Expect ongoing updates as this story evolves.
The Philippines’ regulator recently issued a warning
against XM, the online trading platform for forex and crypto CFDs, for engaging
in unauthorized securities trading activities in the country. According to an advisory dated April 4 by the
Philippines Securities and Exchange Commission mentioned that the company is
“not authorized to sell or offer securities to the public in the Philippines.”
According to the regulator, XM has more than 1,000
trading instruments, 24/7 trading of Crypto CFDs, leverage up to 1000:1, and
bonuses of up to $10,500 US dollars. Moreover, it features a copy trading
feature, allowing users to mimic the trades of popular traders.
However, an investigation by the SEC revealed that XM
has been running promotional campaigns on various social media platforms to
lure investors, including Filipinos, into trading activities on its platform.
“Based on the commission’s database, the operator of the
platform XM is not registered as a
corporation in the Philippines and
operates without the
necessary license and/or authority to sell
or offer any
form of securities
as defined under
section 3.1 of
the securities regulation code (SRC),
to engage in the business of buying or selling securities or as a broker or
dealer as provided undersection 28 of the SRC, or to create or operate an
exchange for the buying and selling of securities as provided under section 32
of the SRC.” The sec wrote.
According to the Philippines’ regulations, securities
being offered to the public must be registered with the SEC, issued by a
registered corporation or licensed dealer, and the issuer must possess a
secondary license to sell or offer securities. In light of these findings, the SEC has warned that
individuals acting as salesmen, brokers, dealers, promoters, or recruiters for
XM within the Philippines may face criminal liability.
Expect ongoing updates as this story evolves.
