TL;DR
- eToro has agreed to pay $1.5 million to the SEC and will limit its crypto offerings in the U.S. to Bitcoin, Bitcoin Cash, and Ether, after being accused of operating as an unregistered broker and clearing agency.
- eToro users in the U.S. will have 180 days to sell other crypto assets. After this period, any positions in assets other than the allowed ones will be liquidated.
- The company will continue to operate globally with access to over 100 crypto assets outside the U.S.
eToro has reached a settlement with the U.S. Securities and Exchange Commission (SEC) that involves paying a $1.5 million fine to resolve charges related to operating as an unregistered broker and clearing agency in its cryptocurrency platform. The resolution of the case, without admitting or denying the SEC’s findings, will involve changes to the company’s crypto asset offerings.
According to the settlement, eToro will limit the crypto assets available to U.S. customers to Bitcoin, Bitcoin Cash, and Ether. Users will have a 180-day period from the issuance of the order to sell other crypto assets in their accounts. After this period, any open positions in assets other than those mentioned will be liquidated, and the funds will be transferred to users’ available cash balances.
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. Highlighted that eToro has chosen to align with existing regulations by removing tokens offered as investment contracts.
eToro Will Continue Offering Over 100 Cryptocurrencies
Yoni Assia, Co-founder and CEO of eToro, minimized the impact of the settlement on the company’s global operations. He noted that the platform will continue to offer access to over 100 crypto assets outside the United States.
Assia emphasized that they aim to comply with regulators and expressed hope that a clearer regulatory framework will be established in the U.S. In the future, which would allow eToro to relist a broader range of cryptocurrencies.
Far from a conciliatory tone, the SEC continues to crack down on any company approaching the crypto industry. Whether external or part of it. There is a need to push for new regulatory agreements that ensure security and transparency. While always respecting the financial freedom of individuals.
