eToro settles with SEC, to cease most crypto trading activity
eToro has agreed to cease most of its crypto trading activities after settling with the SEC.
the company will pay a fine of $1.5 million and delist all coins except Bitcoin, Ethereum and Bitcoin Cash.
eToro will end most of its crypto trading activities following the company’s settlement with the US Securities and Exchange Commission.
A SEC press release on Sept. 11 said that eToro USA had agreed to a settlement with the regulator over charges of operating an unregistered broker and clearing agency. The trading platform will pay $1.5 million in settlement and will “cease and desist” from any further violations of federal laws related to the offering of unregistered securities.
eToro will now only offer a limited set of cryptocurrencies on its platform, the SEC wrote in the announcement.
“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,” Gurbir S. Grewal, director of Division of Enforcement at SEC, said.
eToro to list only three crypto assets
The SEC settlement has seen eToro announce changes to its crypto offerings. As part of the agreement, the platform will only offer US customers access to Bitcoin, Ethereum and Bitcoin Cash.
“From September 11, 2024 eToro users based in the United States are only able to open (buy) new crypto positions in BTC, BCH, and ETH. It is not possible to open new positions in any other cryptoassets,” eToro said in its announcement.
US customers holding other crypto assets on eToro will have 180 days from the SEC’s order date to withdraw their assets to the eToro wallet. This will be open until March 11, 2025.
eToro will, within a week of the end of this timeline, liquidate any cryptocurrencies not transferred and return the proceeds to customers. The key date users might want to note is March 18, 2025.
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