Key Takeaways
- According to the SEC, eToro operated as an unregistered broker.
- eToro agreed to pay $1.5 million to settle charges, without admitting or denying the SEC’s findings.
- eToro will only be listing Bitcoin, Bitcoin Cash, and Ethereum for U.S. customers.
Trading platform eToro is set to withdraw a majority of its crypto asset offerings, following a settlement with the U.S. Securities and Exchange Commission (SEC) and has agreed to pay $1.5 million to wrap up the charges.
eToro Comes Into Compliance
According to the SEC’s Sept. 12 press release, eToro was alleged to be operating as an “unregistered broker and unregistered clearing agency” due to its sale of “certain crypto assets” as securities.
The SEC’s order ruled that since “at least 2020,” eToro sold and traded cryptocurrencies as securities and didn’t comply with certain federal securities laws.
As a result, eToro will be limiting its offerings to certain cryptocurrencies for U.S. customers, namely Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH):
“By removing tokens offered as investment contracts from its platform, eToro has chosen to come into compliance and operate within our established regulatory framework.”
Interestingly, the trading firm agreed to pay the $1.5 million without admitting or denying the SEC’s findings, a move similar to the recent settlement between Uniswap and the U.S. Commodity Futures Trading Commission (CFTC).
“The $1.5 million penalty reflects eToro’s agreement to cease violating applicable federal securities laws as it continues its U.S. operations,” the release reads.
180 Days to Liquidate Crypto Assets
As per the release, eToro customers will have 180 days following the SEC’s order to sell their remaining crypto assets.
The platform itself has 187 days within the issuance of the order to liquidate the remaining crypto assets that eToro “[…] is unable to transfer to its customers, and return the proceeds to the respective customers.”
The ruling could set a precedent for trading platforms and crypto intermediaries going forward. This could spell good news for Uniswap, Coinbase, and other crypto firms in the SEC’s crosshairs.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
