The top US securities regulator has reached a settlement with trading app eToro, severely limiting the platform’s crypto trading capabilities.
According to the US Securities and Exchange Commission (SEC), eToro has done so agreed to pay $1.5 million in fines and limiting his crypto trading options to Bitcoin (BTC), Bitcoin Cash (BCH) and Ethereum (ETH) without admitting or denying allegations that he has been operating as an unregistered crypto broker and clearing agency since 2020 .
The SEC alleges that eToro allowed customers to trade cryptos as securities on the app without following proper registration processes. eToro customers who own cryptocurrencies in the app have 180 days to sell all digital assets that are not BTC, BCH or ETH.
Says Gurbir S. Grewal, Director of the SEC’s Division of Enforcement,
“By removing tokens offered as investment contracts from its platform, eToro has chosen to comply with regulations and operate within our established regulatory framework. This resolution not only improves investor protection, but also provides a path for other crypto intermediaries.
The $1.5 million fine reflects eToro’s agreement to cease violating applicable federal securities laws while continuing its operations in the US.”
In an official statement CEO of eToro & Co-founder Yoni Assia said:
“This settlement allows us to move forward and focus on delivering innovative and relevant products across our diversified U.S. operations. 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 don’t need to take any action at all, according to one company blog post.
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Generated image: Midjourney