eToro, which recently decided to stop offering services to its clients in the Philippines, confirmed to Finance Magnates that the move was motivated by “risk management considerations.” The broker has already “closed inactive accounts and is in the process of closing other accounts.”
“As a global business, eToro constantly reviews and occasionally updates the countries from which we onboard and service clients based on risk management considerations,” an eToro spokesperson told Finance Magnates. “We will no longer be providing services to users in the Philippines.”
eToro Stops Offering Services in the Philippines
eToro has already been sending emails to its existing customers in the Philippines, informing them that it will no longer be offering services, including crypto wallets, copy trading, and ‘Smart Portfolios.’ The broker provided a deadline of 8 December 2024 for Filipino users to close their accounts and withdraw available funds.
Furthermore, the multi-asset brokerage will stop crypto transfers into its Wallet platform on 1 December 2024 and will block Wallet access on 15 December 2024. It additionally highlighted that it will stop Philippines residents’ access to all accounts from 15 February 2025.
“If you reside outside the Philippines within two months, please update your address and submit a valid proof of address, no older than three months, so we can update your records accordingly,” read an email sent to Philippines-based customers of eToro.
Goodbye, eToro! 😭—Will IBKR be banned as well in the Philippines? pic.twitter.com/0QTbgSQU73
— CORRUPTED VODKA (@corruptedvodka) October 11, 2024
Pushed Away by the Regulator?
Although eToro cited “risk management considerations” without specifying the reasons for the closure of its services in the Philippines, it is noteworthy that the local financial watchdog issued a warning against the platform last March.
The Filipino regulator highlighted that eToro is “not authorised to sell or offer securities to the public in the Philippines,” and any “salesmen, brokers, dealers, or agents” promoting the platform in the country risk a monetary penalty of 5 million pesos or imprisonment of up to 21 years, or both.
Although Israel-headquartered eToro, which is progressing towards a public listing, operates with multiple regulatory licenses, it does not have any authorisation locally in the Philippines. However, the platform earlier highlighted that it has no local presence in the country and does not “actively promote or market” its services there.
This article was written by Arnab Shome at www.financemagnates.com.
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