The Philippines’ Securities and Exchange Commission (SEC) recently issued a public advisory warning against the online trading platform eToro, stating that the company is not authorized to sell or offer securities in the country. The advisory, which was released in March and made public on April 4, informed the Filipino public that eToro is not permitted to sell or offer securities to them.
According to the SEC, eToro allows Filipinos to create user accounts on their platform for the purpose of investing and trading unregistered investment products. However, the company is not registered as a corporation in the Philippines and lacks the necessary licenses and authority required by the Securities Regulation Code to sell securities, operate as a broker-dealer, or run a securities trading exchange in the country.
eToro, a multinational trading company founded in 2007, is particularly popular among Millennials. It is a multiasset investment firm with over 33 million registered users worldwide, according to Statista. The platform operates in 140 countries and was valued at $3.5 billion in 2023.
Despite its multinational status, the Philippine finance regulator urges caution before investing in unregistered online platforms like eToro and warns that individuals acting as salespeople, promoters, influencers, endorsers, or agents for eToro in the Philippines could face severe penalties, including fines of up to $88,300 (5 million Philippines pesos) or imprisonment for up to 21 years for violating securities laws.
Notably, eToro’s website currently includes the Philippines as one of its supported countries. Cointelegraph reached out to eToro for further clarification on the matter, but no immediate response was received.
This advisory follows a similar one issued by the SEC in November 2023, which stated that the popular crypto exchange Binance was also not authorized to sell or offer securities to the public. Furthermore, in March, the Philippines’ National Telecommunications Commission (NTC) started blocking crypto company websites that lacked the necessary licenses. Later that month, the SEC instructed the national internet provider to block access to Binance’s website, citing concerns about the security of investors’ funds.
In summary, the SEC in the Philippines has cautioned the public against using the eToro online trading platform as it lacks the necessary authorization to sell or offer securities in the country. The regulator advises individuals to exercise caution when dealing with unregistered online investment platforms and warns of significant penalties for those involved in promoting or endorsing such platforms.