This Exchange Will Stop Trading Almost All Crypto Assets After SEC’s $1.5 Billion Settlement

In the next six months, the US arm of financial services company eToro will stop trading almost all crypto assets on its platform due to a new order from the Securities and Exchange Commission (SEC). .

According to an SEC press release, eToro has violated federal securities laws since at least 2020. As a result, the exchange would pay a $1.5 million fine and make a limited pool of cryptocurrencies available to negotiate

SEC Announces Settlement with eToro

The SEC accused eToro of operating as an unregistered broker and clearing agency and of facilitating the purchase and sale of crypto assets as securities on its online trading platform. Although the exchange offered these services, it did not comply with the registration provisions of the federal securities laws.

Under the settlement, eToro has agreed to stop violating federal securities laws. As of now, the exchange will only offer Bitcoin (BTC), Bitcoin Cash (BCH) and Ether (ETH) to its users.

Following the SEC order, eToro customers have only 180 days to sell other assets that must be removed from the platform, or the exchange will liquidate the cryptocurrencies and return the proceeds to users. The SEC said the online trading platform neither admitted nor denied the allegations, but merely accepted the settlement.

“By removing tokens offered as investment contracts from its platform, eToro has chosen to comply with and operate within our established regulatory framework. This resolution not only improves investor protection, but also provides a path for other crypto brokers. The $1.5 million penalty reflects eToro’s agreement to stop violating applicable federal securities laws while continuing its operations in the United States,” said Gurbir Grewal, director of the Enforcement Division of the SEC.

More regulatory issues

Over the past few years, eToro has taken steps to remain in compliance with SEC laws. In June 2023, the exchange imposed restrictions on several crypto assets classified as securities in the agency’s lawsuits against rival trading platforms Coinbase and Binance.

Assets include Algorand (ALGO), Decentraland (MANA), Dash (DASH) and Polygon (MATIC). Notably, the company had already delisted Ripple (XRP), Cardano (ADA) and Tron (TRX) for various reasons in previous months.

Meanwhile, eToro isn’t just facing regulatory heat from the SEC; the Australian Securities and Investments Commission sued the platform last month for harming investors through its products.

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