Key facts:
EToro will now only support bitcoin, ether and bitcoin cash.
Since September 11, it is no longer possible to open positions on eToro with other cryptocurrencies.
The US subsidiary of the eToro investment platform has reached an agreement with the US Securities and Exchange Commission (SEC) to limit cryptocurrency trading.
The measure, effective As of September 11, trading in only three digital currencies will be allowed: Bitcoin (BTC), Bitcoin Cash (BCH) and Ether (ETH). This means that trading in at least 16 cryptoassets has been discontinued, including XRP, Litecoin, Cardano, Stellar and Dogecoin.
As part of the settlement, eToro will pay a $1.5 million fine for operating as an unregistered broker-dealer and an unregistered clearing agency. The company has agreed to cease operations to curb what the regulator calls “violations of federal securities laws.” in the United States.
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, commented: “By removing tokens offered as investment contracts from its platform, eToro has chosen to comply and operate within our established regulatory framework.”
“This ruling not only improves investor protection, but also provides a path forward for other cryptocurrency intermediaries,” Grewal added.
eToro has agreed to liquidate any crypto assets offered and sold as securities that it cannot transfer to its customers within 187 days of the SEC order, returning any profits to the respective customers. This process will extend until March 2025.
Yoni Assia, co-founder and CEO of eToro, indicated that less than 3% of the total dollar value of US clients’ crypto assets will be affected. Positions in currencies redeemable by the eToro cryptocurrency wallet can remain open indefinitelyAssia also mentioned that the company expects greater regulatory clarity in the US and seeks to enable crypto asset trading that complies with the new framework.
Assia stressed that the agreement, which was reached with the SEC, will have no impact on eToro’s global business, which serves more than 38 million registered users in over 75 countries. Outside the United States, users will continue to have access to more than 100 crypto assets.
This agreement with the SEC marks a new chapter for eToro in the United States, adjusting its cryptocurrency offering as it seeks to adapt to local regulations to continue its global expansion.
eToro joins the list of companies in the cryptocurrency sector that are facing SEC action and do not operate in the United States. Binance, which is the largest cryptocurrency exchange on the market, attests to this.
The exchange house faced a significant fine and operational restrictions, which has led to increased scrutiny on how cryptocurrency companies should operate within the US legal framework. This situation with eToro underscores the SEC’s intention to ensure that cryptocurrency trading platforms adhere to financial regulations, thereby affecting the availability and scope of cryptoasset services for US users.
This article was created using artificial intelligence and edited by a human on the editorial staff.
