eToro Faces Regulatory Action in the Philippines for Unlicensed Activities

The wave of regulation in the world of cryptocurrencies continues to intensify globally, with financial authorities tightening the noose around platforms that operate outside the law. A recent development comes from the Philippines, where the country’s Securities and Exchange Commission (SEC) is redoubling efforts to ensure that the local crypto market operates within legal parameters.

The eToro trading platform, known for its wide range of investment services, is now under the scrutiny of the Philippine SEC for allegedly operating without proper authorizations.

According to the SEC, eToro is operating in the Philippines without the necessary permission to offer or sell securities to the public. This revelation calls into question the operation of the platform, which claims to facilitate access to trading for everyone, regardless of location or dependence on traditional financial institutions. However, the lack of registration as a company in the Philippines and the absence of a proper license to sell securities cast shadows over its operations in the country.

eToro’s stance of attracting Filipino users through promotional campaigns on social media, without complying with the necessary requirements to operate as a licensed broker, was specifically condemned by the SEC. The commission was emphatic in advising the public to proceed with caution when investing in unregistered online investment platforms, citing eToro and its representatives as examples.

In addition to eToro, other platforms are also in the sights of the Philippine SEC. A notable case is that of Binance, which faced similar measures in November 2023, culminating in blocking access to the platform within the country. These moves underscore the Philippine authorities’ commitment to protecting investors and ensuring that cryptocurrency operations in the country comply with current laws.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.