The regulator announced that eToro is not registered with the agency as a broker-dealer and does not have a license that would allow it to offer and sell securities to Filipino traders. However, local citizens are able to create accounts on eToro to invest in digital assets, the department is indignant.
Although eToro is an international company, the financial regulator has urged the public to exercise caution before trading on unregistered online platforms. The SEC warned that any persons acting as sellers, promoters, influencers or agents of eToro in the Philippines could face a fine of up to $88,300 (PhP5 million) or 21 years in prison for violating securities laws.
In November 2023, the SEC issued a similar warning on the world's largest crypto exchange, Binance, saying it may not sell or offer securities to the Filipino public. In March, the National Telecommunications Commission of the Philippines (NTC) began blocking the websites of cryptocurrency companies that do not have a license to operate in the country – Binance was also targeted.
Recall that in May 2023, the Philippine SEC issued a warning on the Gemini trading platform, stating that the platform does not have the authority to attract investments from local citizens.
Source: Bits
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