eToro to cease crypto trading activity following SEC settlement
eToro has agreed to cease most of its crypto trading activities after settling with the SEC.
the company will pay a fine of $1.5 million and delist all coins except Bitcoin, Ethereum and Bitcoin Cash.
eToro will end most of its crypto trading activities following the company’s settlement with the US Securities and Exchange Commission.
A SEC press release on Sept. 11 said that eToro USA had agreed to a settlement with the regulator over charges of operating an unregistered broker and clearing agency. The trading platform will pay $1.5 million in settlement and will “cease and desist” from any further violations of federal laws related to the offering of unregistered securities.
eToro will now only offer a limited set of cryptocurrencies on its platform, the SEC wrote in the announcement.
“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 not only enhances investor protection, but also offers a pathway for other crypto intermediaries,” Gurbir S. Grewal, director of Division of Enforcement at SEC, said.
eToro to list only three crypto assets
The settlement comes after eToro announced changes to its crypto offerings, with future offerings of crypto assets to US customers set to be Bitcoin, Ethereum and Bitcoin Cash. US customers holding other crypto assets on eToro will have 180 days from the SEC’s order date to withdraw their assets.
eToro will within a week of the end of this timeline liquidate any cryptocurrencies not transferred and return the proceeds to customers.
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