Philippines SEC Warns Against Unauthorized eToro Operations
The Asian island-nation has warned those promoting eToro's services in the country that they could be criminally liable
April 5, 2024 09:52 AM
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TL;DR The Securities and Exchange Commission (SEC) of the Philippines has warned that eToro, a popular retail trading platform, is operating without the necessary authorization to offer securities in the country. This comes amid a broader crackdown on the region's unlicensed cryptocurrency and trading platforms. The SEC has emphasized the potential criminal liability for those promoting or enabling eToro's services in the Philippines.
The Securities and Exchange Commission (SEC) in the Philippines recently announced a significant warning for users and promoters of the eToro trading platform. Despite its popularity and wide user base globally, the SEC has clarified that eToro does not possess the required authorization to sell or offer securities within the Philippine jurisdiction.
According to the regulatory body, which is responsible for the oversight of securities registration and regulation, there are specific requirements that must be met before any platform can offer investment products to the public.
The statement highlighted, "While eToro is registered as a broker/dealer in various jurisdictions, it lacks the necessary license in the Philippines to engage in the business of selling securities."
eToro, known for its accessibility and a broad range of investment options, including over 90 cryptocurrencies, boasts a user base exceeding 30 million across more than 140 countries. Despite its international credentials, the SEC's announcement underscores the platform's unauthorized status in the Philippines, pointing out a significant regulatory oversight.
The announcement further detailed, "Based on the Commission's database, eToro is not registered as a corporation in the Philippines and operates without the necessary license and/or authority to sell or offer securities."
This lack of registration and authorization puts eToro, along with its agents, promoters, and influencers in the country, at risk of criminal liability, with severe penalties including fines and imprisonment.
This regulatory action against eToro is part of a broader initiative by the Philippine SEC to regulate the burgeoning cryptocurrency and trading platform market within its jurisdiction.
Earlier in the year, the SEC announced plans to block local access to Binance, another major cryptocurrency trading platform, for similar licensing issues. This series of regulatory moves highlights the Philippine government's commitment to safeguarding its citizens from potential financial risks associated with unlicensed investment platforms.
