eToro accepts SEC $1.5 million charges, no to violate federal securities laws

eToro pays $1.5 million to SEC:

eToro will now only allow U.S. customers to trade bitcoin, bitcoin cash, and ether on its platform.

 

The U.S. Securities and Exchange Commission (SEC) announced on Thursday that eToro USA LLC will pay $1.5 million to settle charges related to operating an unregistered broker and clearing agency. These charges are connected to eToro's trading platform, which facilitated the buying and selling of certain crypto assets considered securities. In addition to the financial penalty, eToro has agreed to stop violating federal securities laws and will limit the range of crypto assets available for trading on its platform.

According to the SEC, eToro will now only allow U.S. customers to trade bitcoin, bitcoin cash, and ether on its platform. The company will provide its customers with the ability to sell all other crypto assets, but only for 180 days following the SEC’s order. After this period, eToro will cease trading in these assets altogether.

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Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, praised eToro's decision to comply with regulatory requirements. He emphasized that by removing tokens offered as investment contracts, eToro is aligning with the SEC’s regulatory framework. This move, he noted, not only enhances investor protection but also sets a precedent for other crypto intermediaries.

eToro has also committed to liquidating any crypto assets deemed securities within 187 days if they cannot be transferred back to customers. The proceeds from these liquidations will be returned to the respective customers. Without admitting or denying the SEC’s findings, Etoro has accepted the cease-and-desist order and the associated penalty, showing its willingness to adhere to established regulations and protect its investors.