Popular investment platform eToro has announced that it will close all accounts based in the Philippines within the next 120 days, with the final deadline set for February 7, 2025. In an email sent to its users, eToro stated that after reviewing the regions where it operates, it has decided to stop offering services in the Philippines.
Why It Matters
eToro’s exit will impact Filipino traders who have been using the platform to trade stocks and cryptocurrencies. This move comes amid growing regulatory pressure on unlicensed financial platforms worldwide. In the Philippines, the Securities and Exchange Commission (SEC) has been closely monitoring and issuing warnings against foreign trading platforms that operate without proper licenses.
Key Details
- Service Suspension: eToro will stop offering all its services in the Philippines, including its crypto wallet, CopyTrader, and Smart Portfolios.
- Trading Cutoff: Trading on the platform will be suspended starting December 8, 2024.
- Withdrawals: After December 8, 2024, withdrawals will only be possible through customer service, not via the app.
- Wallet Services: Crypto wallet services will cease on December 15, 2024.
- Account Deletion: All Philippine-based accounts will be fully deleted by February 7, 2025.
- Notifications: Users will be notified via email and are required to close their trading positions and withdraw funds before the deadlines.
PH Users Already Receiving Notifications
Some users have reported receiving emails from eToro about the upcoming account closures, even if they have no funds in their accounts. Luis Buenaventura, Head of GCrypto, shared that one user had already lost access to the eToro website, even though they still had money in their account.
Regulatory Issues
Earlier this year, the Philippine SEC flagged eToro and other platforms like XM for operating illegally without the necessary licenses. The SEC noted that eToro is not registered as a corporation in the Philippines and does not have the authority to offer securities or act as a broker.
eToro’s Regulatory Problems in the U.S.
In the U.S., eToro also faced regulatory issues, paying a $1.5 million settlement to the SEC for operating as an unregistered broker in its crypto trading activities. U.S. customers are now limited to trading Bitcoin, Bitcoin Cash, and Ether, with all other assets available for sale for a limited time.
How to Withdraw Funds
For Philippine users, it’s essential to withdraw funds before account closure. Here’s a quick guide for withdrawing funds:
- Crypto Transfers:
- Use the eToro Money app to send crypto by entering the recipient’s address and confirming via SMS.
- USD Investment Account Withdrawals:
- Click “Withdraw Funds,” choose the amount, and select a payment method.
- GBP or EUR Account Withdrawals:
- Use the eToro Money app under the “Cash” tab to make payments.
What’s Next?
Users are advised to transfer their funds before account deletion by using customer service after the trading suspension. The Philippine SEC is working on expanding investment options, including setting up a futures market with support from the U.S. Commodity Futures Trading Commission (CFTC) and the Asian Development Bank (ADB).
Conclusion
eToro’s exit from the Philippines underscores the importance of regulatory compliance and highlights the risks for investors using unlicensed platforms. Filipino users need to act quickly to withdraw their funds before account deletion. While eToro is shutting down, there may be more regulated investment options available in the future as the SEC looks to develop the local market.
Source: https://bitpinas.com/regulation/etoro-users-in-ph-face-a-deadline/
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