The Securities and Exchange Commission (SEC) in the Philippines has issued a warning against the online trading platform eToro, stating that it lacks authorization to sell or offer securities within the country.
The SEC issued the advisory in March, publicly posting it on April 4, cautioning the public against eToro’s activities.
According to the SEC, eToro allows Filipinos to create user accounts on its platform for investment and trading purposes, despite not being authorized to offer securities in the Philippines.
Notably, eToro is not registered as a corporation in the Philippines and lacks the necessary licenses or authority mandated under the Securities Regulation Code for selling securities, operating as a broker-dealer, or managing a securities trading exchange within the country.
Founded in 2007, eToro is a multinational trading company popular among Millennials, boasting over 33 million registered users globally, as per Statista.
The platform operates in 140 countries and held a valuation of $3.5 billion in 2023.
While eToro lists the Philippines as a supported country on its website, the SEC advises the public to exercise caution before engaging with unregistered online investment platforms like eToro and its representatives.
Individuals acting as salespersons, promoters, influencers, endorsers, or agents for eToro in the Philippines could face penalties of up to $88,300 or 21 years imprisonment for violating securities laws.
This advisory follows a similar one issued by the SEC in November 2023 against Binance, another crypto exchange, for unauthorized securities offerings.
The Philippines National Telecommunications Commission (NTC) also initiated website blocking of crypto companies lacking necessary licenses in March, with the SEC directing the blocking of Binance’s website access.
The SEC’s advisory serves as a warning to Filipino investors regarding the risks associated with engaging in unauthorized securities offerings on platforms like eToro. It underscores the regulator’s commitment to safeguarding investors and enforcing securities laws within the country.
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