Philippines SEC Accuses eToro of Unauthorized Securities Sales

The Philippines Securities and Exchange Commission (SEC) has issued a public advisory concerning the operations of eToro, an online trading platform. The regulatory body emphasized that eToro is not authorized to offer or sell securities within the Philippines as it has not met the country's registration and licensing requirements. The SEC has pointed out that eToro's current operations allow Filipino users to invest and trade in unregistered investment products, which contravenes the Securities Regulation Code (SRC).

The SEC also issued a stern warning to individuals acting as salespeople, promoters, influencers, or agents for eToro in the Philippines. These representatives could face legal repercussions, including fines up to five million pesos (approximately $88,230) or imprisonment for a term of up to 21 years under Section 28 of the SRC. This warning extends to any unauthorized entities dealing in securities within the country.

Moreover, the SEC is taking action against other platforms like Binance, indicating an increased scrutiny of online trading and cryptocurrency platforms in the country. The Commission is also considering measures to block access to such platforms to enforce compliance with Philippine securities laws. The SEC's stance underscores its commitment to regulating the securities market and protecting Filipino investors from engaging with unauthorized and potentially risky investment platforms.