Is XT.com Legal in Philippines? Is XT.com Safe?
Choosing a trustworthy cryptocurrency exchange is crucial as it directly impacts the safety and security of your digital assets. The high risk of scams in this area necessitates extreme caution from users.
Our analysts have noticed a growing interest in XT.com services among users in the Philippines. However, questions remain regarding its safety and legal status within the Philippines. Traders Union experts have addressed this concern by crafting a detailed review that explores both the pros and cons of using XT.com.
So, let us tell you if XT.com is allowed in the Philippines and if it's safe to use for trading.
Is XT.com legal in Philippines? Does it have a license?
Currently, the XT.com is not regulated at the government level, which remains a common scenario in the cryptocurrency market. However, such platforms generally fall short compared to exchanges with Tier-1 regulation, which signifies oversight by top-tier financial authorities such as the FCA (UK), SEC (USA), or ASIC (Australia), ensuring strict compliance with security and operational standards. We compared XT.com with two Tier-1 regulated exchanges to help you make an informed choice
| XT.com | Bybit | MEXC | |
|---|---|---|---|
Tier-1 regulation |
No |
Yes |
No |
Government-regulated |
No |
Yes |
No |
Successful hacks |
No |
Yes |
No |
Cold wallet storage |
Yes |
Yes |
Yes |
Investor protection fund |
No |
Yes |
No |
2FA |
Yes |
Yes |
Yes |
Verification (KYC) |
Yes |
Yes |
Yes |
Open an account |
|
|
|
Short summary about the XT.com exchange
The XT.com exchange is a platform for P2P exchange and cryptocurrency sales, including derivatives and margin trading. This is also an exchange for fiat funds. The peculiarity of the cryptocurrency exchange is that it issues its proprietary cryptocurrency and provides users with software for mining. Bitcoin, Ethereum, Litecoin, Tether, Tron, Ripple, and other cryptocurrencies are traded on the website, with over 120 instruments provided here in total. There are tokenized assets. The leverage can be up to 125x depending on the selected asset. Any strategy can be used on the cryptocurrency exchange, including scalping. There are stop loss and profit functions. The storage method for cryptocurrencies is cold. Replenishment and withdrawals are possible from bank cards and accounts to bank cards and accounts. A standard affiliate program and special bonuses for blockchain members are offered.
| 💰 Account currency: | Cryptocurrencies, fiat currencies |
| 🚀 Minimum deposit: | From $30 (depends on the asset) |
| ⚖️ Leverage: | Up to 125x |
| 💱 Spread: | Market |
| 🔧 Instruments: | Cryptocurrencies, fiat currencies |
| 💹 Margin Call / Stop Out: | No |
XT.com Pros and Cons
👍 XT.com Pros:
•Cryptocurrencies and other varieties of currencies;
•Replenishment in fiat currencies;
•Favorable trading commissions;
•Leverage is up to 125x.
•Proprietary mining platform;
•Large trading volumes; high liquidity.
•Convenient trading terminal;
👎 XT.com Cons:
•No investment programs (only deposits);
•No training programs or study guides.
Rules and Regulation
Licensing in the Philippines
In the Philippines, the Bangko Sentral ng Pilipinas (BSP), the country's central bank, oversees the regulation of cryptocurrencies. In 2017, the BSP issued Circular No. 944, which established guidelines for virtual currency exchanges (VCEs) operating in the Philippines. VCEs are required to register with the BSP and comply with Anti-Money Laundering/Combating the Financing of Terrorism (AML/CTF) regulations.
Investor protection in the Philippines
The BSP aims to protect cryptocurrency investors by ensuring that VCEs implement sufficient security measures, conduct client due diligence, and adhere to AML and CTF requirements. However, cryptocurrency investments still carry inherent risks, including price volatility, cybersecurity threats, and regulatory uncertainties. Investors are encouraged to conduct thorough research and exercise caution when investing in cryptocurrencies.
Taxation in the Philippines
The Philippine Bureau of Internal Revenue (BIR) issued the Revenue Memorandum Circular No. 2017-01, which clarified the taxation of income derived from crypto transactions. According to the circular, income from cryptocurrency transactions, including gains from trading and mining, is subject to taxation.
Profits are taxed as either capital gains or ordinary income, depending on the nature and frequency of the transactions. Additionally, individuals and businesses engaged in cryptocurrency-related activities are required to register with the BIR and keep records of their transactions for tax purposes. Failure to comply with tax obligations may result in penalties and legal consequences.
Do I recommend using XT.com in the Philippines?
The XT.com cryptocurrency exchange can be chosen by clients from Philippines, although there are certain nuances. The exchange does not have a financial license, but that is rather because the financial regulator of Philippines does not issue the licenses to crypto exchanges in general. There have been certain security-related incidents, but those very singular cases. The reputation of the exchange can be considered standard.
FAQ
Can I work with crypto exchanges considering that they don’t have a license in Philippines?
The fact that a crypto exchange does not have a license doesn’t mean that traders from Philippines will have problems while working with it. Cryptocurrency exchanges are not subject to licensing in many countries, while there are many exchanges with good reputation. Assess the available information about the exchange and check its reputation.
What security methods for account protection do crypto exchanges employ?
Cryptocurrency exchanges may offer various security methods. These include the two-factor authentication, first and foremost, and also such methods as a security question, additional passwords, etc.
Can an exchange that has had a security-related incident in the past be trusted?
You need to check whether such incidents were regular. If it was one episode several years ago, while the reputation of the exchange is good, you can work with such an exchange.
Should I work with an exchange if I have doubts about its reputation?
No. Always choose the cryptocurrency exchanges that have a good reputation.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.