eToro limits crypto trading to only 3 assets, including Bitcoin, after $1.5M SEC settlement News ▸ US ▸ Bitcoin ▸ Regulation
eToro limits crypto trading to only 3 assets, including Bitcoin, after $1.5M SEC settlement
eToro said it looks forward to a clear crypto regulatory regime in the US.
2 min read
Updated: Sep. 12, 2024 at 4:53 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Trading platform eToro will halt trading for most digital assets on its platform following a $1.5 million settlement with the US Securities and Exchange Commission (SEC), according to a Sept. 12 statement.
The SEC’s investigation revealed that, since 2020, eToro has allowed US customers to trade crypto assets that are considered securities without complying with federal registration requirements.
While eToro did not admit or deny the SEC’s allegations, it agreed to restrict its crypto offerings to a few assets, including Bitcoin, Bitcoin Cash, and Ethereum.
Gurbir S. Grewal, SEC Director of Enforcement, noted that the $1.5 million fine reflects eToro’s commitment to halt its violations of federal securities laws while continuing US operations.
He stated:
“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.”
As part of the agreement, eToro must liquidate all other digital assets within 180 days.
The move is part of the SEC’s broader regulatory crackdown on several crypto-related firms, including Binance, Kraken, and Coinbase. Notably, the regulator has also hinted at legal actions against Robinhood and the NFT marketplace OpenSea, with the issuance of a Wells Notice.
eToro’s response
eToro co-founder and CEO Yoni Assia remarked that the settlement allows the company to move forward and focus on offering innovative products across its US business.
He emphasized the company’s commitment to compliance, saying:
“It is important for us to be compliant and to work closely with regulators around the world. We now have a clear regulatory framework for cryptoassets in the UK and Europe and we believe we will see similar in the US in the near future. Once this is in place, we will look to enable trading in the cryptoassets that meet this framework.”
Meanwhile, eToro stated that its users can either close their crypto positions or transfer supported coins to the eToro wallet before March 11, 2025.
By March 18, 2025, any remaining crypto positions, except for those on BTC, BCH, ETH, or unsupported coins, will be sold, and the proceeds will be credited to users’ cash balances in their investment accounts.
It added:
“Only those positions that cannot be transferred to the wallet will be liquidated on March 18, 2025. This represents less than 3% of the total dollar value of US customers’ cryptoassets.”
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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