beincrypto.com
eToro has announced it will significantly reduce its cryptocurrency offerings in the US, following a settlement with the Securities and Exchange Commission (SEC).
The move comes after the SEC charged eToro for operating as an unregistered broker and clearing agency, facilitating the trading of crypto assets classified as securities.
Under the terms of the agreement, eToro will pay $1.5 million in penalties and restrict its U.S. platform to only three cryptocurrencies: Bitcoin (BTC), Bitcoin Cash (BCH), and Ether (ETH). U.S. customers will have 180 days from the issuance of the SEC’s order to sell off any remaining crypto assets that will no longer be supported. After this window, eToro will liquidate those assets and return proceeds to customers.
The SEC’s investigation revealed that since at least 2020, eToro allowed U.S. customers to trade crypto assets as securities without proper registration. “By removing tokens offered as investment contracts from its platform, eToro has chosen to come into compliance and operate within our established regulatory framework,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. Grewal emphasized that the settlement improves investor protection and sets a precedent for other crypto platforms.
eToro’s decision marks a significant shift in its U.S. operations, aligning its practices with federal securities laws. The company will cease offering tokens that fall under the category of investment contracts, focusing on the few assets that meet regulatory approval.
This development reflects the growing scrutiny of cryptocurrency platforms by regulatory authorities and signals potential changes in how digital assets will be traded in the U.S. going forward.