Philippine NTC Directs ISPs: Block OctaFX Websites

The National Telecommunications Commission (NTC) has instructed all ISPs to block OctaFX. To safeguard investors, the SEC demanded this.

This decision follows a previous NTC order blocking MiTrade's websites and applications. In addition to SEC prohibitions, the case addresses the Philippines' Revised Corporation Code and Securities Regulation Code violations.

Owing to similar infractions, the NTC endorsed the SEC's request to prohibit OctaFX's websites and apps in a document dated February 29. On February 27, the SEC wrote to restrict OctaFX's website to safeguard investors and prevent the company's illegal activities from expanding nationwide.

The Securities and Exchange Commission (SEC) underscored the risks that investors face while using these websites and apps, in addition to the fact that selling unregistered securities to Filipinos is prohibited by the Securities Regulation Code in specific places.

The SEC's September 2023 recommendation against the platform raised public awareness of OctaFX's products. Trading possibilities involving approximately 300 financial instruments across many asset classes, such as foreign currency pairings, equities, index funds, and commodities derivatives, were promoted on the OctaFX website. The platform also made it possible to swap with a maximum leverage ratio of 1:500.

The platform's investments and securities were not registered in the Philippines, even though OctaFX's operators seemed to be licensed brokers and dealers elsewhere. The Stock Regulation Code mandates that Philippine stocks issued to the public by the Securities and Exchange Commission be protected. This method involves registering agents, giving detailed information regarding securities, and obtaining an SEC license.

In the Philippines, OctaFX's operator lacked the necessary permissions to undertake securities trading and was not legally incorporated. Thus, the Securities and Exchange Commission cautioned prospective investors and alerted anyone promoting or facilitating OctaFX to possible criminal responsibility under the Securities Regulation Code. Violators risk a potential 21-year jail sentence and penalties of up to P5 million.

The NTC's decision to ban OctaFX's website in response to these concerns indicates the government's dedication to safeguarding investors from unapproved and possibly fraudulent investment schemes. To prevent further exposing the investing public to the risks associated with unregistered securities trading platforms, internet service providers must promptly comply with the order.

The protection of investors and the integrity of financial markets will be the priority as the SEC and NTC continue to collaborate to detect and address criminal investment activities throughout the country. When investing, people should be cautious and make sure the platforms are authorized and provide authentic products.