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After reaching a settlement with eToro, the U.S. Securities and Exchange Commission (SEC) has limited the platform’s ability to trade cryptocurrencies. eToro is required to pay $1.5 million in penalties as part of the accord. Without acknowledging or refuting the claims, the platform can only provide Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH) for cryptocurrency trading in the United States.
As per the SEC’s report, eToro has been functioning as an unlicensed cryptocurrency broker and clearinghouse since 2020. According to the commission, users were able to trade cryptocurrencies as securities on eToro without having to go through the necessary registration procedures. Future support for eToro will only be limited to BTC, BCH, and ETH, thus users who own other cryptocurrencies on the platform will need to sell them within 180 days.
Gurbir S. Grewal, Director of the SEC’s Enforcement Division, highlighted the importance of this agreement, saying, “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 fine reflects eToro’s commitment to align with federal securities laws while continuing its operations in the U.S. market.
In response to the settlement, eToro’s CEO and Co-Founder Yoni Assia expressed optimism, stating, “This settlement allows us to move forward and focus on providing innovative and relevant products across our diversified US business.” Assia assured users that the platform will continue to offer a wide range of services, including trading in stocks, ETFs, options, and the three approved cryptocurrencies.
According to eToro’s official blog, most users will not need to take any action as the platform implements these changes.