Philippines SEC Targets eToro Following Binance Action
The Philippines Security and Exchange Commission has issued an advisory against online trading platform eToro, accusing it of offering unregistered securities in the country.
The Philippines regulator had earlier taken action against Binance and blockaded the exchange’s operations in the country.
Philippines SEC Issues Advisory
The regulator issued the advisory in March and was publicly posted on the 4th of April, informing the public at large that eToro was not authorized to sell or offer securities to investors in the Philippines. The regulatory body stated that while eToro is a registered broker/dealer in different jurisdictions, certain requirements must be met before any platform can offer securities and investment products in the Philippines. eToro is one of the most popular trading platforms in the world, with over 30 million registered users in 140 countries. The platform is extremely popular in the UK, Europe, the US, and Australia.
According to the Philippines SEC, eToro has been operating without a license in the country.
“Based on the Commission’s database, the operator of the platform ETORO is NOT REGISTERED as a corporation in the Philippines and OPERATES WITHOUT THE NECESSARY LICENSE AND/OR AUTHORITY to sell or offer any form of securities as defined under Section 3.1 of the Securities Regulation Code (SRC), to engage in the business of buying or selling securities or as a broker or dealer as provided under Section 28 of the SRC, or to create or operate an exchange for the buying and selling of securities as provided under Section 32 of the SRC,” said the Philippines Securities and Exchange Commission.”
Action Against eToro Representatives
The advisory went on to state that any individual acting as a salesperson, promoter, influencer, endorser, or agent of eToro could face a penalty of up to $88,300 (5 million Philippines pesos) and 21 years in prison for violating securities laws. eToro has listed the Philippines as a supported country on its website. The platform has not yet commented on the developments.
Similar Advisory Against Binance
In November 2023, the Philippines SEC issued a similar advisory against Binance, stating that the platform was not authorized to sell or offer securities to the public. The regulatory body revealed plans to block local access to the exchange in March, stating that the platform had continued to offer investment and trading opportunities to residents of the Philippines without obtaining the necessary licenses from the commission.
The SEC also requested Google and Meta to block all marketing campaigns related to Binance in the Philippines and ask the national internet provider to block access to the exchange’s website. The SEC Chairperson Emilio B. Aquino had stated at the time,
“The SEC has identified the aforementioned platform and concluded that the public’s continued access to these websites/apps poses a threat to the security of the funds of investing Filipinos.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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