The Securities and Exchange Commission (SEC) of the Philippines has issued a warning against the online trading platform eToro, stating that it is not authorized to offer or sell securities in the country. The advisory, which was made public on April 4, cautions the public that eToro is not registered to operate as a corporation in the Philippines and lacks the necessary licenses to sell securities, act as a broker-dealer, or run a securities trading exchange.

EToro, a popular trading platform among millennials, was founded in 2007 and has over 33 million registered users worldwide. The platform is available in 140 countries, including the Philippines, and was valued at $3.5 billion in 2023. However, the Philippine SEC advises the public to exercise caution when dealing with unregistered online investment platforms and their representatives.

The SEC's advisory also warns that anyone acting as a salesperson, promoter, influencer, endorser, or agent for eToro in the Philippines could face penalties of up to $88,300 (5 million Philippines pesos) in fines or 21 years imprisonment for violating securities laws.

EToro's website currently lists the Philippines as a supported country, but the company has not yet responded to Cointelegraph's request for clarification.

The Philippine SEC has previously issued similar advisories, including one in November 2023 warning against the unauthorized sale or offering of securities by Binance. In March, the Philippines National Telecommunications Commission (NTC) began blocking crypto company websites without the necessary licenses, and the SEC instructed the national internet provider to block access to Binance’s website.

The SEC's actions are part of an ongoing effort to protect Filipino investors from unlicensed investment platforms and ensure compliance with securities regulations.