eToro has agreed to pay a settlement of $1.5M and stop breaking federal securities regulations.
Only Bitcoin, Ether, and Bitcoin Cash would be traded by consumers in the U.S as per the deal.
e-Toro, a trading platform, and the United States Securities and Exchange Commission (SEC) have announced a settlement. The business’s cryptocurrency trading platform was at the center of a regulatory battle with the SEC, which claimed the firm was using its services as a clearing agency and broker without proper registration. A lot of people think that the continued crackdown on crypto companies by US authorities is limiting innovation.
After allegations of providing cryptocurrency trading services without registration surfaced, the platform and the SEC came to an arrangement. The securities regulator said in a press statement dated September 12 that eToro has agreed to pay a settlement of $1.5 million and stop breaking federal securities regulations.
Only Three Cryptocurrencies Permitted
The business will keep its activities in the United States while maintaining compliance with applicable regulations, according to Gubir Grewal, Director of the SEC’s Division of Enforcement. Both investors and other crypto intermediaries stand to benefit from this resolution’s strengthened protections. In light of its commitment to end its violations of relevant federal securities laws, eToro has agreed to pay a $1.5 million fine and maintain its operations in the United States.
Moreover, the deal calls for the business to cut ties with almost all cryptocurrencies. It was revealed in the announcement that only Bitcoin, Ether, and Bitcoin Cash would be traded by consumers in the United States. Within 180 days after the Commission’s ruling, users will have the option to sell additional assets.
While negotiating the settlement, eToro laid forth its future goals, one of which is to provide transparent regulatory frameworks.
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