The announcement of a settlement between the United States Securities and Exchange Commission (SEC) and eToro trading platform has put an end to a regulatory dispute over the company’s alleged operation as an unregistered broker and clearing agency for its crypto trading platform. This development is part of a broader crackdown by U.S. regulators on crypto firms, which some critics view as hindering innovation.
Following accusations of providing unregistered trading services for crypto assets, eToro has agreed to limitations on its offerings to U.S. users, restricting trading to Bitcoin, Ether, and Bitcoin Cash. Under the terms of the settlement, the company will pay $1.5 million to resolve the charges and pledge to comply with federal securities laws moving forward. eToro will also allow users to sell other assets for a period of 180 days after the SEC’s order.
In a statement, SEC’s Division of Enforcement Director Gubir Grewal emphasized the importance of adhering to relevant laws while operating in the United States. The $1.5 million penalty reflects eToro’s commitment to abide by federal securities laws and signals a pathway for compliance for other crypto intermediaries as well.
This resolution brings clarity to eToro’s U.S. operations and underscores the company’s dedication to investor protection within the regulatory framework. Users can expect a streamlined trading experience focusing on the specified cryptocurrencies, ensuring compliance with SEC requirements.