Philippine SEC Warns Public Against Unauthorized Online Trading Platform eToro
Summary:
The Philippine Securities and Exchange Commission (SEC) has cautioned the public against the use of popular online trading platform, eToro, stating it is not authorized to operate or sell securities in the country. Despite eToro's global operations and local popularity, it lacks necessary registration and licenses under the Securities Regulation Code. Individuals found promoting eToro's services could face hefty penalties or imprisonment. The SEC urges the Filipinos to exercise caution while investing in unregistered internet investment platforms.
The Philippine Securities and Exchange Commission has warned against the use of eToro, an online trading platform, stating that the platform does not have the necessary authorization to sell or offer securities within the country. The financial watchdog made this public notice known in March, and made it public on April 4, cautioning the populace that eToro lacks the qualification to vend or propose securities to the Philippine public. According to the SEC advisory, eToro's operation permits Filipinos to establish user accounts on their platform with the aim of investing and trading in unregistered investment products. Source: SEC Philippines. The regulatory body stated that the firm has not been registered as a cooperation within the Philippine boundaries and lacks the required license or power under the Securities Regulation Code to vend securities, function as a broker-dealer, or operate a securities trading exchange within the country. eToro, a multinational trading company established in 2007, enjoys popularity amongst the millennials. With over 33 million registered users globally, as reported by Statista, this multi-asset investment firm operates in 140 countries and was estimated to be worth $3.5 billion in 2023. Despite its multinational status, the Philippines' financial watchdog urges the public to be cautious before investing in these sorts of unregistered online investment platforms and their representatives. The bulletin further warned that any individual acting on behalf of eToro in the Philippines as salespeople, promoters, advocates, endorsers, or agents could face penalties up to $88,300 (5 million Philippine pesos) in fines or a 21-year imprisonment for contravening securities laws. Currently, the eToro company website still lists the Philippines as a supported country. When eToro was contacted for further clarification, there was no immediate response. Related: The Philippine government blocks unsanctioned crypto exchange sites. In November 2023, a similar advisory was issued by the SEC, stating that the crypto exchange Binance was not authorized to sell or offer securities to the public. In March, sites without the necessary licenses started being blocked by the Philippines National Telecommunications Commission (NTC). Later in the same month, as reported by Cointelegraph, the SEC directed the national internet provider to block access to Binance's website. According to SEC Chairperson Emilio B. Aquino, the SEC has recognized these platforms and concluded that the public's continued access poses a risk to the security of the Filipinos' funds. Bitcoin ETF expert Eric Balchunas refutes skeptics: X Hall of Flame.
Published At
4/5/2024 7:48:36 AM
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