Key Insghts
- The Philippine SEC issued an advisory warning that eToro is not authorized to sell or offer securities in the country
- The SEC stated eToro’s operations allow Filipinos to trade unregistered investment products
- The regulator warned that anyone acting as a salesperson or agent for eToro in the Philippines could face penalties
MANILA (MarketsXplora) – The Philippine Securities and Exchange Commission (SEC) has issued a public advisory warning that online investment platform eToro is not authorized to sell or offer securities in the country, the regulator announced.
The SEC stated that eToro’s operations allow Filipinos to create user accounts on its platform for the purpose of investing and trading in unregistered products, which it said is in violation of the country’s Securities Regulation Code.
“ETORO’s operations allow Filipinos to create user accounts on their platform for the purpose of investing and trading unregistered investment products,” the SEC wrote in its March advisory, which was posted publicly earlier this week.
The regulator said eToro, a multinational trading firm founded in 2007, is not registered as a corporation in the Philippines and lacks the necessary licenses or authority required to sell securities, operate as a broker-dealer, or run a securities exchange within the country.
Despite eToro’s global presence, with over 33 million registered users worldwide according to Statista, the Philippine SEC advised the public “to exercise caution before investing in these kinds of unregistered online investment platforms and their representatives.”
The SEC bulletin warned that anyone acting as a salesperson, promoter, influencer, endorser or agent for eToro in the Philippines could face penalties of up to 5 million Philippine pesos ($88,300) in fines or 21 years imprisonment for violating securities laws.
The advisory comes amid a broader crackdown by Philippine authorities on unauthorized cryptocurrency and online investment platforms operating in the country without the proper licenses.
In November 2023, the SEC issued a similar warning against crypto exchange Binance, stating it was not authorized to sell or offer securities to the public in the Philippines.
This was followed in March by the Philippine National Telecommunications Commission (NTC) beginning to block the websites of crypto companies found to be lacking the necessary licenses to operate.
“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,” SEC Chairperson Emilio B. Aquino said at the time.
Despite the eToro platform currently listing the Philippines as a supported country on its website, the company did not immediately respond to a request for comment from MarketsXplora on the SEC’s advisory.