Retail trading platform eToro has been found to be in violation of Philippine securities laws by the country’s Securities and Exchange Commission (SEC).
According to the announcement from the regulatory body in charge of securities registration and regulation, eToro may be a registered broker/dealer in other jurisdictions, but in the Philippines, there are certain conditions that must be satisfied before investment products and securities can be offered or sold to the public.
There are more than 30 million members from 140+ countries on the eToro trading platform. It lets people purchase and sell the assets of more than 90 different cryptocurrencies, and it’s particularly popular in the United Kingdom, Europe, the United States, and Australia.
The trading and investing site in question is not in possession of the necessary license to operate in the Philippines, according to the SEC.
“According to data from the Commission’s database, the operator of the ETORO platform is not registered as a corporation in the Philippines and operates without the requisite license and/or authority as defined in Section 3.1 of the Securities Regulation Code (SRC) to sell or offer securities, to serve as a broker or dealer for securities transactions as permitted under Section 28 of the SRC, or to establish or manage an exchange for buying and selling securities.”
Those associated with eToro in the area, including brokers, dealers, promoters, recruiters, and influencers, will be considered platform enablers, according to the regulator. They could face criminal charges under Section 28 of the SRC and a maximum fine of five million pesos ($88,230) or 21 years in prison.
The SEC of the Philippines said in March that it intends to restrict access to Binance, a cryptocurrency trading platform, inside the country. The SEC had accused the exchange of repeatedly providing Filipinos with investing and trading possibilities without the appropriate license, leading to this verdict.
Google and Meta were asked by the Philippine Commission to deactivate all advertising efforts linked to Binance, further tightening the ban on the cryptocurrency exchange in the country.
The media reported in February that eToro is aiming for a value above $3.5 billion because it is considering the US as a possible listing venue.
Also Read: Google Files RICO Lawsuit Against Crypto Scammers
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