The Securities and Exchange Commission of the Philippines has accused the online trading platform eToro of offering unregistered securities to the public. In an advisory released in March, the financial regulator informed the public that eToro does not have the necessary authorization to sell or offer securities in the country. The advisory stated that eToro's operations in the Philippines allow individuals to invest and trade in unregistered investment products without appropriate licenses or authority as required by the Securities Regulation Code.
eToro, a multinational trading company established in 2007, is a popular platform with millennials worldwide. Despite its global presence, the Philippine finance watchdog recommended caution to the public before investing in such unauthorized online platforms. Anyone found promoting or representing eToro in the Philippines could face severe penalties, including fines of up to $88,300 or imprisonment for up to 21 years for violating securities laws.
The eToro website currently shows the Philippines as a supported country, but the company has not responded to requests for clarification from Cointelegraph. Previously, the SEC had issued a similar advisory against Binance, another crypto exchange, in November 2023 for not having the necessary authorization to sell securities. The Philippines National Telecommunications Commission started blocking unauthorized crypto websites in March, including websites like Binance, to protect investors' funds.
Chairperson Emilio B. Aquino of the SEC expressed concerns about the security risks posed to the funds of Filipino investors by continuing to access these unauthorized websites and applications.
