After the Philippine SEC prohibited Binance from conducting securities transactions, the regulatory body has now placed restrictions on eToro, an online trading platform. The public has been warned about eToro's unauthorized offering of securities in the country, with a cautionary notice issued in March and publicly disclosed on April 4th.

Background on SEC Actions Against Binance

In November 2023, the SEC issued a warning to Binance, a cryptocurrency exchange, regarding its unauthorized marketing and provision of securities to the public. Following this, in March, the National Telecommunications Commission of the Philippines took similar action to block websites of cryptocurrency businesses lacking the required licenses.

SEC Chairperson Emilio B. Aquino expressed concern about the risk to Filipino investors posed by public access to these websites and apps. As a result, the SEC requested the blocking of Binance's website and other similar investment and trading platforms.

Restrictions on eToro by SEC

The Philippine SEC accused eToro of allowing Filipinos to trade unregistered investment products on its platform. The public has been advised to exercise caution when investing in these unregistered online platforms and their affiliates. The SEC warned individuals acting as salespersons, promoters, influencers, endorsers, or brokers for eToro in the Philippines that they could face severe penalties under securities regulations.

eToro's Website Status in the Philippines

Although the eToro website now lists the Philippines as a supported country, the company did not immediately respond to media inquiries seeking clarification. The Philippines National Telecommunications Commission started blocking websites of crypto companies operating without proper licenses in March.

Recap

In summary, the SEC has taken action against eToro for facilitating unauthorized trading of investment products by Filipinos. Investors have been cautioned against engaging with such unregistered online platforms and their associates. Individuals promoting eToro in the Philippines could face significant penalties, as seen in the case of Binance in November 2023.

Disclaimer

The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Trading stocks, cryptocurrencies, or other related assets carries inherent risks of financial loss.