eToro Settles SEC Charges with $1.5 Million Penalty and Halts Crypto Trading!

Key points:

• eToro USA LLC has agreed to pay $1.5 million to settle SEC charges for operating as an unregistered broker and clearing agency for crypto assets.
• eToro will only allow trading in Bitcoin, Bitcoin Cash, and Ether. Other crypto assets will be available for sale for just 180 days.

The Securities and Exchange Commission announced that it had reached eToro settles SEC to pay $1.5 million for acting as an unregistered broker and clearing agency.

SEC Accuses eToro of Operating Without Proper Registration

This eToro settles SEC permitted U.S. customers to buy and sell certain securities crypto assets without complying with the applicable federal registration requirements.

According to the eToro Settles SEC, trading crypto assets that are securities in the United States has been allowed since at least 2020. However, it did not register for that. According to the SEC’s findings, eToro has agreed to cease and desist from violating federal securities laws and significantly curbing the range of crypto assets available on its trading platform.

Read more: Nigerian SEC Cracks Down on Unsanctioned Crypto Exchanges!

Penalty and Compliance Measures Under SEC Settlement

eToro announced immediately that it would allow U.S. customers to buy and sell only Bitcoin, Bitcoin Cash, and Ether. Customers can sell the rest of their crypto assets for up to 180 days from this notice, but any transaction dealing with them will be stopped afterwards. Moreover, eToro agreed to sell off the remaining crypto-asset securities, which cannot be transferred to its customers within 187 days of the eToro settles SEC’s order. It will restitution the proceeds to the customers.

The Director of the SEC’s Division of Enforcement, Gurbir S. Grewal, said: “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 enhances investor protection and provides a path forward for other crypto intermediaries.” The $1.5 million penalty underscores eToro’s commitment to abide by federal securities laws while continuing with its U.S. operations.