Market Times:

London:

New York:

Singapore:


eToro Narrows Crypto Focus to BTC, BCH, and ETH After $1.5M SEC Settlement

The SEC accused eToro of trading cryptocurrency assets classified as securities without complying with federal registration laws.

eToro

Trading platform eToro has agreed to pay $1.5 million to settle the U.S. Securities and Exchange Commission’s charges that it operated as an unregistered broker and clearing agency with its crypto trading services.

According to the regulator, eToro has allowed U.S. customers to trade crypto assets deemed to be securities via its platform since at least 2020, without complying with the required registration laws.

Thus, the platform violated federal securities regulations by failing to register as a broker or clearing agency.

eToro to Limit Crypto Trading in the U.S.

As part of the settlement, eToro has agreed to halt trading for all crypto assets aside from Bitcoin, Bitcoin Cash, and Ether.

Customers have 180 days to sell other crypto assets on the platform before they are removed. After this period, any remaining assets classified as securities will be liquidated, with proceeds returned to customers.

“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,” Gurbir S. Grewal, Director of the SEC’s division of enforcement, stated.

He further emphasized that the $1.5 million penalty reflects the platform’s commitment to ceasing its violations of federal securities laws as it continues its operations in the U.S.

While eToro has neither admitted nor denied the SEC’s findings, it has agreed to comply with the cease-and-desist order and liquidate any untransferable crypto assets classified as securities within 187 days. The company will return the proceeds from these liquidations to affected customers.

Regulatory Crackdown Nets Billions in Settlement

The latest settlement joins the growing list of fines imposed on various crypto exchanges by the SEC. A recent report shows that the regulatory body has been busier than ever, having slammed a $4.68 billion fine on 11 crypto entities, the highest ever recorded in a year.

This year’s figure brings the total fines the SEC has levied on crypto firms and individuals since 2013 to over $7.42 billion.

Faith

Faith is a dedicated content writer who is focused on expanding her interest and knowledge about cryptocurrencies and blockchain technology. In her free time, she enjoys listening to music, reading, and traveling.