The U.S. Securities and Exchange Commission (SEC) announced today that eToro USA LLC has agreed to pay a $1.5 million fine over allegations that it operated as an unregistered broker and clearing agent.
eToro agreed to pay the fine for failing to comply with federal securities laws while conducting activities on its platform that traded certain crypto assets as securities, and only offered trading in a limited set of crypto assets.
According to the SEC’s ruling, eToro offered its services to U.S. clients as an unregistered broker and clearing agent starting in 2020 but failed to complete registrations required under federal securities laws.
Which cryptocurrencies are allowed?
Going forward, users in the US will only be able to trade Bitcoin, Bitcoin Cash, and Ethereum. eToro announced that it will allow the sale of other crypto assets for an additional 180 days.
SEC Enforcement Division Director Gurbir S. Grewal stated that eToro has complied with the regulatory framework with these steps and that this decision both increases investor protection and shows a path for other crypto brokerage companies.
eToro agreed to regulate its operations in accordance with the decision, without admitting or denying the SEC’s findings, and to pay a $1.5 million fine. It will also liquidate crypto assets that cannot be transferred to customers within 187 days and return any proceeds to customers.
Stay tuned for new information.
