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Philippine SEC Issues Advisory Against eToro, Following Binance Blockade

In this post:

  • Philippines’ SEC issues an advisory against eToro, citing a lack of authorization to sell securities in the country.
  • Individuals promoting eToro in the Philippines could face fines or imprisonment for violating securities laws.
  • Regulatory actions against eToro follow similar interventions targeting crypto exchange Binance in November 2023.

 

The Philippine Commission on Securities and Exchange issued a regulation news article against online portfolios of eToro with financial loss caused by investors. This is also associated with the other move made by other exchanges of crypto Binance, which is about the replacement for November 2023. Securities and Exchange Commission of the Philippines announced on April 4, indicating to the public that eToro is not covered by local legislation against purchasing and selling stocks in the Philippine territory.

Unauthorized operations and regulatory concerns

In their advisory, the CFD defines that the multinational eToro trading entity, permitted to operate in the Philippines with a population of about 140 million users, has not received the necessary license to engage in authorized transactions. According to the SEC, one of the major arguments is that eToro is not registered with the agency in the country, and there is no evidence of the company’s incorporation into the Philippines. Lastly, it also fails to obtain the required licenses (plural) under the provisions of the Securities Regulation Code (plural). It fails to be the platform and can’t send products, act as an agent, or enable stock exchange within the specific country.

Thus, apart from the multifarious SEC disincentives of employing uncertified internet portals like eToro, any gambling person must ponder the risks they might incur. First, the part added that offenders should be punished with legal sanctions instead of naming eToro an infringement on freedom of expression violation. Online traders risk being sanctioned PHP 5 million or $88,357 and sentenced to a maximum of 21 years imprisonment for committing securities law violations.

eToro’s response and continued presence

Specialized attention is a welcome offer, but this would demand the SEC curtail their strategy not to associate. As per listings on eToro’s official website, the Philippines is indicated as a supported country. However, Cointelegraph has no answer from the link given in the eToro mention, so there is no reply from that company.

The following move, made by the SEC last week, is the current onset of new measures by the government that relate to the crypto and online trading businesses in the country. However, this news came by in November 2023 when the SEC brought in a similar advisory their counterpart in the US had in place. It means that Binance can not exercise any regulatory or legal authority allowed for security services involving selling securities in the United States.

Therefore, the NTCA (National Telecommunications Commission) chose to increase the potency of banishing sites online that participate in cryptocurrency transactions without a valid permit. Consequently, an SEC order was made, demanding the company stop resolving Binance’s website. The reason is that the security of the investors’ money may be harmed if Binance doesn’t offer enough proof that it can deal with the Filipino currency.

In contrast to the SEC’s advice, the reformers in the Philippine investor’s online financial market have been heavily alerting those who go into platforms similar to eToro. A compliant approach based on currently existing laws will be the challenge if rules and regulations of the crypto sphere and online trading are moved to more rigorous scrutiny. E-Broker eToro’s failure in the national business scene indicates its inability to take off, raising concerns for future investors. They are consequently getting informed regarding reality and actively employ the insight in their actions.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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