eToro Resolves SEC Legal Dispute, Agrees to Restrict Cryptocurrency Trading in the US

The U.S. Securities and Exchange Commission (SEC) disclosed a newly reached accord with a cryptocurrency company on Thursday. The agreement stipulates that eToro, based in Israel, will pay a penalty of $1.5 million for conducting operations as an unregistered securities platform.

eToro to cease majority of cryptocurrency trading activities

According to a press release from the SEC, it was asserted that eToro engaged in activities as both an unregistered brokerage and an unregistered clearing agency when it traded specific cryptocurrencies that are deemed securities.

Gurbir S. Grewal, the SEC’s Enforcement Division Director, made a statement concerning the settlement:

eToro is now aligning with regulatory compliance by choosing to remove tokens deemed as investment contracts from its offerings. This move not only strengthens protection for investors but also provides a possible model for additional cryptocurrency entities […] As part of the settlement agreement, the fine of $1.5 million imposed on eToro reflects their commitment to stop any infringements of the federal securities laws as they resume activities in the United States.

– SEC

The SEC has initiated legal disputes with numerous significant players in the cryptocurrency market over the past couple of years, including Binance, Coinbase, and Kraken, leading to a series of notable legal challenges.

Following the agreement, eToro has decided to discontinue any actions that violate the pertinent federal securities legislations. Furthermore, the firm will significantly reduce the variety of crypto assets it facilitates for trading. As per the SEC, the organization will restrict its offerings to trading in Bitcoin, Ethereum, and Bitcoin Cash for its customer base.

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