Regulatory News ⚖️eToro Halts Crypto Trading for Most Assets in $1.5M SEC Settlement

eToro Halts Crypto Trading for Most Assets in $1.5M SEC Settlement

eToro has agreed to pay $1.5 million to settle with the U.S. Securities and Exchange Commission (SEC) over violations of federal securities laws. As part of the settlement, eToro will halt nearly all crypto trading for U.S. customers, allowing only Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH) transactions.

eToro Cuts Crypto Options for U.S. Users

On Sept. 12, the SEC announced that eToro had been operating as an unregistered broker and clearing agency since 2020. The SEC claimed eToro allowed U.S. customers to trade cryptocurrencies it considers securities, without proper registration. Although eToro settled the case, it did not admit or deny these allegations.

As part of the agreement, U.S. users have 187 days to sell off any other cryptocurrencies. After that, any remaining holdings will be converted to cash and returned to users.

eToro CEO Yoni Assia Comments on SEC Settlement. Source: eToro/X

Yoni Assia, eToro’s CEO, said the settlement allows the company to move forward and focus on its U.S. business. He also mentioned that eToro will continue to offer stocks, ETFs, and options trading, while U.S. crypto options will be limited as eToro halts crypto trading.

eToro’s Settlement with the SEC

Gurbir S. Grewal, director of the SEC’s enforcement division, noted that eToro’s compliance could set an example for other platforms. He said the $1.5 million fine reflects eToro’s decision to align with U.S. regulations as it continues its operations in the country.

eToro reaches a 1.5 million Settlement with the SEC. Source: SEC

The settlement also highlights the broader regulatory crackdown in the crypto industry. Back in 2020, eToro delisted Ripple (XRP) and other tokens following the SEC’s lawsuit against Ripple. Despite these U.S. regulatory issues, the company has continued its services outside the country, securing approval to operate in the EU.

Since 2013, the U.S. Securities and Exchange Commission (SEC) has fined crypto-related entities more than $7.4 billion, signaling intensified scrutiny on the sector. By restricting U.S. users to BTC, BCH, and ETH, eToro’s settlement reinforces the SEC’s stance that many digital assets may be classified as securities under U.S. law.

The post eToro Halts Crypto Trading for Most Assets in $1.5M SEC Settlement appeared first on CoinChapter.

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