Trading App eToro Exits the Philippines
Financial services app eToro is ending its operations in the Philippines. The app, which describes itself as an investing and trading platform that aims to make trading accessible to anyone, anywhere and reduce the dependency on traditional financial institutions, made the announcement in an email sent to its users.
According to the email, eToro will no longer offer its services to users based in the Philippines. The services include crypto wallet, CopyTrader, and Smart Portfolios. The company advised that its users’ accounts will remain open “with limited access” until December 8, 2024 in order for them to complete either of two actions: close all open positions, and request a withdrawal for all available funds.
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Meanwhile, coin transfer services in the app will cease starting December 1, 2024, wallet access itself will be blocked on December 15, 2024, and users will no longer be able to access their accounts beginning February 7, 2025.
eToro offers a crypto exchange that supports trading in over 30 cryptocurrencies and an exchange for trading commodities, currencies, indices, as well as an online brokerage platform with a limited selection of stocks and exchange-traded funds. The app was founded in 2007 and became available for download in the Philippines around 2019.
According to the company, the eToro app and its services is available in about 140 countries.
However, in advisory issued in March 2024, the Securities and Exchange Commission warned the investing public against using eToro, saying that it is not authorized to sell or offer securities in the Philippines.
“Based on the Commission’s database, the operator of the platform ETORO is NOT REGISTERED as a corporation in the Philippines and OPERATES WITHOUT THE NECESSARY LICENSE AND/OR AUTHORITY to sell or offer any form of securities as defined under Section 3.1 of the Securities Regulation Code (SRC), to engage in the business of buying or selling securities or as a broker or dealer as provided under Section 28 of the SRC, or to create or operate an exchange for the buying and selling of securities as provided under Section 32 of the SRC,” the SEC said.
“In addition, those who act as salesmen, brokers, dealers or agents, representatives, promoters, recruiters, influencers, endorsers, and enablers of the ETORO platform in selling or convincing people to invest in this platform within the Philippines even through online means may be held criminally liable under Section 28 of the SRC and be penalized with a maximum fine of Five Million Pesos (P 5,000,000.00) or imprisonment of Twenty One (21) years or both,” the SEC added.
This isn’t the first time that the SEC has issued warnings against online trading apps and platforms. In March this year, the agency banned Binance, the world’s largest cryptocurrency exchange in the Philippines.
In 2021, popular host and automotive personality James Deakin posted a lengthy complaint about eToro, claiming he lost money in the app. A later update said he managed to recover some of his investments in the trading platform.
