The top U.S. securities regulator has reached a settlement with the trading app eToro severely limiting the platform’s crypto trading abilities.
According to the U.S. Securities and Exchange Commission (SEC), eToro has agreed to pay $1.5 million in penalties and limit its crypto trading options to Bitcoin (BTC), Bitcoin Cash (BCH) and Ethereum (ETH) without admitting to or denying charges of operating as an unregistered crypto broker and clearing agency since 2020.
The SEC contends that eToro allowed customers to trade cryptos as securities on the app without following the proper registration processes. eToro customers holding crypto on the app have 180 days to sell all digital assets that aren’t BTC, BCH or ETH.
Says SEC Enforcement Division Director Gurbir S. Grewal,
“By removing tokens offered as investment contracts from its platform, eToro has chosen to come into compliance and operate within our established regulatory framework. This resolution not only enhances investor protection but also offers a pathway for other crypto intermediaries.
The $1.5 million penalty reflects eToro’s agreement to cease violating applicable federal securities laws as it continues its U.S. operations.”
In an official statement, eToro CEO & Co-Founder Yoni Assia said,
“This settlement allows us to move forward and focus on providing innovative and relevant products across our diversified US business. US users can continue to trade and invest in stocks, ETFs (exchange-traded funds), options, and three of the largest crypto assets.”
Most eToro users will not need to take any action at all, according to a company blog post.
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