Key takeaways:
- The online trading platform eToro has received a warning from the Philippines’ SEC, stating that it is not permitted to offer or sell securities in the nation.
- The regulators cautioned the public against participating in “unregistered online investment platforms and their representatives.”
The online trading platform eToro has received a warning from the Philippines’ Securities and Exchange Commission (SEC), stating that offering or selling securities nationwide is not permitted.
The public was informed by the financial regulator’s March advice, which was published on April 4, that eToro, an online investment trading platform, is not permitted to offer or sell securities to the general public in the Philippines. In its advice, the SEC stated:
“eTORO’s operations allow Filipinos to create user accounts on their platform for the purpose of investing and trading unregistered investment products,”
It stated that the company is not registered as a corporation in the Philippines and lacks the authorization or licenses required by the Securities Regulation Code to conduct business in the nation as a broker-dealer, sell securities, or manage an exchange for trading securities.
Founded in 2007, eToro is a well-liked international trading company among Millennials. Statista reports that the multi-asset investment firm has over 33 million registered users globally. The platform was valued at $3.5 billion in 2023 and is accessible in 140 countries.
The Philippine finance regulator cautioned the public against participating in “unregistered online investment platforms and their representatives,” despite the fact that the company is international.
The advisory further stated that anyone operating in the Philippines as an eToro agent, promoter, influencer, endorser, or agent may be subject to fines of up to $88,300 (5 million Philippine pesos) or 21 years in jail for breaking securities laws. The Philippines is presently listed as a supported nation on the eToro website.
The SEC released similar advice in November 2023, noting that cryptocurrency exchange Binance was not permitted to offer or sell securities to the general public.
In March, the National Telecommunications Commission (NTC) of the Philippines started blocking the websites of cryptocurrency companies without the required licenses. Subsequently, the SEC directed the national internet provider to obstruct access to Binance’s website later that month.
