Trading platform eToro has agreed to pay $1.5 million to settle charges from the U.S. Securities and Exchange Commission (SEC) for operating as an unregistered broker and clearing agency, and for facilitating the trading of certain crypto assets classified as securities.
The SEC announced the settlement on Thursday, stating that eToro must cease violations of federal securities laws and limit the range of crypto assets available for trading.
Under the terms of the settlement, U.S. customers will only be able to trade three cryptocurrencies: Bitcoin (BTC), Bitcoin Cash (BCH), and Ether (ETH). eToro has been given 180 days to allow users to sell other crypto assets before they are removed from the platform.
The SEC’s order found that since at least 2020, eToro allowed U.S. customers to trade crypto assets that were being offered and sold as securities without complying with the necessary registration provisions.
Yoni Assia, eToro’s Co-Founder and CEO, commented on the settlement, stating, “This settlement allows us to move forward and focus on providing innovative and relevant products across our diversified U.S. business.”
He emphasized that the impact of the settlement would be minimal on eToro’s global operations, as users outside the U.S. will continue to have access to over 100 crypto assets.
Assia also highlighted eToro’s commitment to compliance and the importance of regulation in protecting consumers. He expressed optimism about the future of cryptocurrency regulation in the U.S., anticipating a clearer framework that would allow eToro to offer a broader range of crypto assets once established.
The SEC’s charges against eToro stem from its operations as both a broker and a clearing agency without the required registration. This settlement marks a significant move in the ongoing regulatory scrutiny of cryptocurrency platforms, as authorities seek to ensure compliance with federal laws governing securities.
