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Unauthorized Trading Platform in the Philippines
The Securities and Exchange Commission (SEC) in the Philippines has declared that eToro, a popular retail trading platform, is not authorized to sell or offer securities to the public in the country.
The regulatory body emphasized that certain requirements must be met before securities and investment products can be sold or offered to the public in the Philippines, despite eToro being a registered broker/dealer in other jurisdictions.
About eToro
- eToro has over 30 million users across 140 countries.
- It is particularly popular in the UK, Europe, the U.S., and Australia.
- Users can trade over 90 cryptocurrencies on the platform.
The SEC highlighted that eToro is operating without the necessary license required in the Philippines. The commission stated that eToro is not registered as a corporation in the country and lacks the authority to sell securities as defined by the Securities Regulation Code.
Legal Consequences for eToro Representatives
The SEC warned that individuals representing eToro in the region could face legal consequences. Brokers, dealers, agents, promoters, recruiters, and influencers associated with eToro may be held criminally liable under Section 28 of the Securities Regulation Code, with penalties including fines of up to Five Million Pesos or imprisonment for up to 21 years.
Regulatory Challenges for Binance
In a related development, the Philippines SEC announced plans to restrict local access to Binance, a leading crypto trading platform. This move comes after the SEC accused Binance of offering investment opportunities to Filipinos without the necessary license.
The commission has also requested major tech companies like Google and Meta to block all marketing campaigns related to Binance in the Philippines.
eToro’s IPO Considerations
Recent reports suggested that eToro is exploring an initial public offering (IPO) with a valuation target exceeding $3.5 billion. The platform is reportedly eyeing the U.S. market for its potential listing.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
