The Securities and Exchange Commission (SEC) in the Philippines recently issued a statement declaring that the retail trading platform eToro is unauthorized to sell or offer securities to the public in the country. While eToro is a registered broker/dealer in various jurisdictions around the world, it has not met the necessary requirements to do so in the Philippines. With over 30 million users and a presence in more than 140 countries, eToro is a popular trading platform that allows users to trade the underlying assets of over 90 cryptocurrencies. However, the SEC stressed that eToro is operating without the required license in the Philippines.
According to the SEC, eToro is not registered as a corporation in the Philippines and does not have the necessary license or authority to sell or offer any form of securities under the Securities Regulation Code (SRC). The regulator warned that individuals representing eToro in the region, such as brokers, dealers, agents, promoters, recruiters, and influencers, could be held criminally liable and face penalties of up to Five Million Pesos ($88,230) in fines or 21 years of imprisonment. This announcement comes as part of the SEC’s efforts to enforce regulatory compliance within the securities industry in the Philippines.
In addition to its actions against eToro, the Philippines SEC has also announced plans to block local access to the popular crypto trading platform Binance. The commission accused Binance of offering various investment and trading opportunities to Filipinos without obtaining the necessary license, prompting them to take regulatory action against the platform. To further enforce its ban on Binance, the SEC has requested Google and Meta to block all marketing campaigns related to the exchange in the Philippines. This move reflects the commission’s commitment to regulating the cryptocurrency industry and protecting investors from potential risks.
Despite facing regulatory challenges in the Philippines, eToro has been exploring potential IPO plans, with reports suggesting that the trading platform is seeking a valuation of more than $3.5 billion. As part of its expansion strategy, eToro is considering the U.S. as a potential destination for a listing, indicating its ambition to tap into the American market. The platform’s IPO plans and valuation goals underscore its growth trajectory and aspirations to further establish itself as a leading player in the global trading industry.
Overall, the recent regulatory actions taken by the Philippines SEC against eToro and Binance highlight the importance of compliance and adherence to securities laws in the country. By cracking down on unauthorized trading platforms and enforcing penalties for non-compliance, the SEC aims to safeguard investors and maintain the integrity of the securities market. As eToro navigates regulatory hurdles and explores IPO opportunities, the trading platform will need to address regulatory issues and ensure compliance with the relevant laws and regulations in each jurisdiction where it operates.
