The U.S. Securities and Exchange Commission (SEC) announced a settlement with eToro, a new financial trading platform, on Thursday. eToro USA LLC has agreed to pay $1.5 million and ban U.S. customers from trading most cryptocurrencies on its platform. The exceptions are Bitcoin, Bitcoin Cash and Ethereum.
eToro is a new financial company in Israel. It advertises copy trading services and a variety of convenient trading products, attracting young investors from all over the world to use its platform. According to its website, there are more than 6,000 assets on its platform and as many as 3,000 users. Ten thousand. eToro also obtained a New York BitLicense and currency transfer license in February last year.
The SEC determined that eToro has been operating as a broker and settlement institution since 2020, providing U.S. customers with the purchase and sale of crypto assets through eToro’s online trading platform, many of which involve securities in nature, but eToro has not complied with the registration requirements of the federal securities laws. . eToro USA LLC has agreed to pay a $1.5 million settlement.
Going forward, the only cryptoassets that US customers will be able to trade on eToro are Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH). U.S. customers are required to sell other crypto assets within 180 days.
Gurbir S. Grewal, Director of the SEC’s Enforcement Division, said:
The $1.5 million fine reflects eToro’s agreement to continue its U.S. operations while simultaneously ceasing violations of applicable federal securities laws. The resolution not only strengthens investor protection, but also provides a path for other cryptocurrency intermediaries.
There are still over 70 cryptocurrencies on the eToro website, including XRP, Solana, and BNB.
Robinhood Crypto, the encryption arm of the US online brokerage Robinhood, also received a Wells Notice from the SEC in early May. It indicates that SEC staff has made a preliminary decision to pursue enforcement action against the company, alleging securities violations.
This article eToro agrees to pay $1.5 million to settle SEC settlement, US customers will only be able to trade BTC, BCH and ETH first appeared on Chain News ABMedia.
