Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
eToro to cease most crypto offerings after SEC settlement

eToro to cease most crypto offerings after SEC settlement

BlockworksBlockworks2024/09/12 19:12
By:Blockworks

The SEC announced that eToro would pay $1.5 million as part of the settlement

The Securities and Exchange Commission has reached a settlement with eToro.

eToro was charged with operating as an unregistered broker in connection with its crypto trading platform. As part of the settlement, eToro will end most of its crypto trading activity on the platform, according to the Thursday announcement from the SEC.

Earlier this week, eToro announced that it would alter its crypto offerings “due to the regulatory environment.”

Newsletter

Subscribe to Blockworks Daily

Subscribe

US users can only trade bitcoin, bitcoin cash and ether. Other positions will be liquidated in mid-March of next year.

“Proceeds from these liquidations will be transferred to users’ available cash balance in their investment accounts,” the company added . 

Additionally, eToro will pay the SEC $1.5 million to settle the charges, and the company walks away without admitting or denying the findings from the SEC. 

“The SEC’s order finds that, since at least 2020, eToro operated as a broker and clearing agency by providing U.S. customers the ability, through eToro’s online trading platform, to trade crypto assets being offered and sold as securities, but eToro did not comply with the registration provisions of the federal securities laws,” the SEC 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 not only enhances investor protection, but also offers a pathway for other crypto intermediaries,” SEC’s Gurbir Grewal said.

This is not the first time that the SEC’s targeted a financial services company. The SEC previously issued Robinhood a Wells notice , though it has yet to announce any formal legal action following the notice.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter .

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter .

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags
  • eToro
  • SEC
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Shiba Inu Community Pushes Token Toward $0,001

HappyCoinNews2024/11/14 19:00

215 Arrested in South Korea’s $232M Crypto Scam

South Korean police have arrested 215 people for taking part in a massive crypto fraud scheme

Altcoinbuzz2024/11/14 19:00

BlackRock Launches BUIDL Fund on 5 Blockchains

BlackRock, the world’s largest asset manager, just took a big step in the crypto world

Altcoinbuzz2024/11/14 19:00