eToro Faces Philippines Scrutiny for Alleged Securities Sale

The regulatory commission flagged the platform as unlicensed and unauthorized to offer services to the public.

by . Fact checked by: Ciaran Lawler, Editor: Stefan Trapp
Published:
Chairman Emilio Benito Aquino holding up a document infront of the SEC building.
Created by Gabor Kovacs from DailyCoin
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  • eToro risks Philippines SEC sanction as allegations of unauthorized securities sale emerge.
  • The platform was flagged by authorities as not registered to operate in the region.
  • The SEC issued a similar advisory against crypto exchange Binance last year.

Regulations in the crypto industry have become a watchword as global financial authorities turn up the heat on crypto service providers to ensure regulated and authorized operations across various jurisdictions. Not left behind, the Philippines Securities and Exchange Commission (SEC) is strengthening its oversight of the local crypto market to address non-compliant platforms.

In line with this, the regulatory commission has offered a public disclaimer against the crypto trading platform eToro.

Philippine Tags eToro Unauthorized

According to the Philippine SEC website, eToro is not authorized to sell or offer securities to the public in the Philippines.

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The regulator asserted that although the platform “describes itself as an investing and trading platform which aims to make trading accessible to anyone, anywhere and reduce the dependency on traditional financial institutions,” it is not registered as a corporation in the Philippines and operates without the necessary license to sell securities.

A screengrab of the SEC’s disclaimer against eToro.

Condemning the platform’s approach to operations within the Philippines, the commission emphasized that eToro targets Filipinos by offering promotional campaigns on social media to attract users to trade using its main website and mobile applications. At the same time, it has not fulfilled the requirements to operate as a licensed broker.

The SEC urged the public to exercise caution before investing in unregistered online investment platforms like eToro and their representatives.

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eToro is not the only platform under the Philippine SEC’s scrutiny. In November 2023, the regulatory body issued a public advisory against Binance. Subsequently, the SEC also blocked access to Binance within the country, including its official website and affiliated web pages.

Curious about eToro and its available services? Read here to find out:
Kraken vs. eToro: Everything You Need to Know Before You Trade

Read more about the evolving KYC requirements in Binance and how it impacts you:
Here’s What Binance’s Tightening KYC Standards Means for You

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      This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

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      Grace Abidemi
      Grace Abidemi

      Grace Abidemi, a cryptocurrency reporter at DailyCoin, covers industry developments and trends. She previously worked as a freelance writer. With a Bachelor's degree in German Language and certifications in marketing and storytelling, Grace creates engaging content. When not working, she's in Nigeria, mastering cooking and canvas painting, and enjoys learning about different cultures and languages.