The Securities and Exchange Commission (SEC) in the Philippines issued a statement declaring that the retail trading platform eToro does not have authorization to sell or offer securities to the public in the Philippines.
The regulatory body highlighted that although eToro is a registered broker/dealer in other jurisdictions, certain requirements need to be met before selling or offering securities and investment products to the public in the Philippines.
Operational Restrictions in The Philippines
eToro, a renowned trading platform with over 30 million users across 140 countries, is particularly well-liked in the UK, Europe, the U.S., and Australia. It facilitates the trading of over 90 underlying assets of various cryptocurrencies.
- The SEC pointed out that eToro is functioning without the necessary license mandated by the Philippines.
- According to the Philippines Securities and Exchange Commission, eToro does not have the essential registration as a corporation in the Philippines to offer securities or engage in securities trading activities.
Fines and Imprisonment for eToro Representatives
The SEC also warned that individuals representing eToro in the region, such as brokers, dealers, agents, promoters, recruiters, and influencers, could face criminal charges under Section 28 of the SRC. They might incur a maximum fine of Five Million Pesos ($88,230) or a prison sentence of up to 21 years.
Binance’s Regulatory Challenges in the Philippines
In a recent development, the SEC disclosed its intention to block local access to the crypto trading platform Binance. This decision comes after the commission accused Binance of offering investment opportunities to Filipinos without obtaining the required license.
The Philippines’ regulatory body escalated its prohibition on Binance by requesting Google and Meta to block any marketing campaigns related to the crypto exchange in the country.
eToro’s IPO Aspirations
Media reports from February hinted at eToro’s ambition to achieve a valuation exceeding $3.5 billion as it contemplates a potential listing in the U.S.
Hot Take: Compliance is Key in the Crypto Market
It is imperative for all crypto trading platforms, such as eToro and Binance, to ensure compliance with regulations in every jurisdiction where they operate to avoid facing legal repercussions. The crypto industry continues to evolve, and adherence to regulatory requirements is crucial for sustainable growth and trust among users.
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Sources:
– [SEC Advisory Against eToro](https://www.sec.gov.ph/wp-content/uploads/2024/04/2024Advisory-Against-eTORO.pdf)
– [FT Article on eToro’s IPO Plans](https://www.ft.com/content/c7e4ad29-4bf8-43e3-85dd-cf35585c6ad1)
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