Global stock trading platform eToro has reached an agreement with the Securities and Exchange Commission to stop trading for almost all crypto assets. In a September 12 press release, the regulator confirmed that the stock trading platform also agreed to pay a $1.5 million settlement for violating applicable federal securities laws in the country.
Earlier, the SEC charged eToro for allegedly operating an unregistered brokerage and clearing agency through its crypto trading platform. However, without admitting or debunking SEC findings, eToro has now made a move to align with the cease-and-desist order issued by the regulator. The implication of this order is that eToro will liquidate any crypto assets offered to customers in form of securities within 187 days.
eToro to offer Bitcoin, Ethereum, and Bitcoin Cash trading alone to US customers
In line with the terms of the settlement, eToro will only be able to offer Bitcoin, Ethereum, and Bitcoin Cash trading services to its users in the United States. As such, customers are expected to sell their other cryptocurrencies within the next 180 days, effective from September 12, 2024.
According to Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, eToro has taken an important step to embrace compliance and operate within the existing regulatory framework in the country. Grewal revealed that the stock exchange platform is expected to remove concerned tokens offered to US residents as investment contracts from its exchange within the specified period. The exec believes the resolution between the SEC and the global exchange strengthens investors’ protection and also provides an effective avenue for other crypto intermediaries. While sharing more insights into the $1.5 million settlement, Grewal insists that the penalty underscores eToro’s commitment to stop violating federal securities laws in the US.
eToro also faced a similar issue with the Philippines regulatory agency last April. Then, the regular issued an advisory against the firm, saying it offered unregistered securities. Beyond eToro, other similar crypto exchanges like Binance and Coinbase are also facing numerous regulatory issues.
Read More: