📢 eToro reaches a settlement with the SEC, and the issue of fines has become a hot topic in the community! 🚨
The SEC recently reached a settlement with the eToro cryptocurrency exchange, requiring the financial services company to remove almost all other crypto assets from its platform after paying a settlement of $1.5 million.
This means that after this, in addition to providing Bitcoin (BTC), Bitcoin Cash (BCH) and Ethereum (ETH) services, eToro's US users will not be able to trade other types of cryptocurrencies.
The decision was made after the SEC found that eToro had violated federal securities laws since 2020. eToro was accused of operating as an unregistered broker and clearing agency and facilitating the buying and selling of crypto assets that are considered securities on its trading platform.
According to the settlement agreement, eToro's customers have 180 days to deal with other crypto assets they hold. If no action is taken within these 180 days, the SEC will liquidate the assets and return the proceeds to users.
This move is part of the SEC's increased supervision to protect investors and ensure that cryptocurrency trading platforms comply with federal securities laws. The SEC's head of enforcement said that eToro's settlement not only strengthens investor protection, but also provides a way for other cryptocurrency intermediaries to operate in compliance.
This is not the first time eToro has faced regulatory pressure. In the past few years, the company has imposed restrictions on some crypto assets that the SEC considers to be securities and has faced similar legal challenges in Australia.
🗣️ Opinion:
Some people have questioned the appropriateness of the amount of the fine paid by eToro for the $1.5 million settlement. They believe that given that the exchange's daily revenue may far exceed this amount, such a fine may not matter at all!
At the same time, if the exchange can continue to operate after paying a relatively small amount of fines without having to bear more significant consequences for its violations, this may raise public concerns about regulatory fairness and user rights protection.
💬How do you think regulators can ensure that fines are sufficiently deterrent? And how to deal with it to find a balance between market freedom and compliance? See the comments section!
