eToro Reaches Settlement with SEC Over Charges of Operating as Unregistered Broker; Halts Majority of Crypto Trading Activities

The leading U.S. financial regulatory body has finalized an accord with the popular online trading platform eToro, significantly curtailing its offerings of cryptocurrency trades.

As reported by the U.S. Securities and Exchange Commission (SEC), eToro has consented to a settlement that includes a fine of $1.5 million and restricts its cryptocurrency trade features to three currencies: Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH). This agreement is made without eToro admitting or denying allegations of operating unlawfully as an unregistered crypto broker-dealer since 2020.

The SEC alleges that eToro enabled its users to engage in crypto transactions that it classifies as securities without adhering to the mandatory registration criteria. Users currently possessing cryptocurrencies on the application now have a 180-day window to dispose of all assets that do not fall under BTC, BCH, or ETH categories.

SEC Enforcement Division Director Gurbir S. Grewal comments,

“eToro has now opted to align with our regulatory guidelines by excluding tokens that are regarded as investment contracts from its offerings. Not only does this settlement advance the protection of investors, but it also demonstrates a clear path forward for other entities operating within the crypto space.

The settled fine of $1.5 million signifies eToro’s commitment to halting any further breaches of the federal securities regulations throughout its future activities in the United States.”

Yoni Assia, eToro’s CEO and Co-Founder, in a formal pronouncement, reflected,

“The terms of this agreement enable us to progress with our mission of launching innovative and pertinent products for our diverse American clientele. Our U.S. users will maintain the capability to engage in transactions and investments involving stocks, ETFs (exchange-traded funds), options, and the major trio of crypto assets.”

An eToro company blog assures that the majority of eToro customers will not need to undertake any action.

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Disclaimer: The views expressed in The Daily Hodl are not investment advice. Any high-risk investments in Bitcoin, cryptocurrency, or digital assets should be made only after due diligence. You conduct your transactions and trades at your risk, and any losses you may incur are solely your responsibility. The Daily Hodl does not promote the buying or selling of any cryptocurrencies or digital assets and is not an investment advisor. The Daily Hodl participates in affiliate marketing programs.

Image Credit: Midjourney