- eToro will delist most cryptocurrencies for U.S. customers and pay a $1.5 million fine as part of a settlement with the SEC.
- While Bitcoin, Bitcoin Cash, and Ether will remain available, eToro’s CEO is confident that the settlement has had minimal effect to the firms global business.
Retail trading platform eToro will be delisting almost all cryptocurrencies to its U.S. customers as part of a settlement with the U.S. SEC. The SEC announced that the 2007 launched crypto exchange firm has consented to disburse a $1.5 million fine to settle charges related to eToro’s operation of an unregistered broker and clearing agency. These charges included Etoro facilitating the trading of certain crypto assets which according to the SEC were securities since at least 2020.
As part of the settlement, the firm will be “ 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 Grewal, director of the SEC’s enforcement division.
In addition to the settlement, eToro has agreed to only offer “a limited set of crypto assets available for trading,” the SEC said. These crypto assets include Bitcoin, Bitcoin Cash, and Ether. The crypto exchange where no wrongdoing was admitted announced to its U.S. customers that they had up to 180 days to sell their crypto holdings except those mentioned above following the SEC order.
As a company serving over 38 million registered users from more than 75 countries, the terms of the settlement will have a minimal impact on our global business, Outside of the United States, eToro users will continue to enjoy access to over 100 cryptoassets.
Additionally” As a global, multi-asset trading and investing platform we continue to experience strong growth and remain committed to becoming a public company in the future.” Yoni Assia, eToro’s co-founder and CEO.
Greenlighting Bitcoin, Bitcoin Cash, and Ether is a win for investors based in the U.S. as the penalty has clarified legal uncertainties, a factor that has been slowing down the development of the cryptocurrency industry for over a decade.
This move highlights the non-ending legal battle between the SEC and crypto firms. Most notably, the Ripple vs SEC legal battle has been the most popular with court proceedings taking place for almost 4 years. The SEC’s harsh stance on crypto has led to many influential parties in the sphere calling for legal clarity. The team has also refuted against the SEC’s use of phrases like “crypto assets as securities.”
The SEC maintains that most cryptocurrency tokens are securities subject to its regulatory oversight. However, many crypto companies disagree, accusing the regulator of excessive control.
Its also worth mentioning that the SEC is embroiled in legal disputes with several crypto exchanges, including Coinbase, Binance, and Kraken. These platforms contend that crypto-assets do not qualify as securities, unlike traditional stocks and bonds.
