The Securities and Exchange Commission (SEC) announced today (Thursday)
that eToro USA LLC will pay $1.5 million to settle charges related to operating
an unregistered broker and unregistered clearing agency.
The settlement comes as eToro is considering listing its
shares, with the US as a potential destination. The company is currently
exploring an initial public offering (IPO) in either New York or London.
According to eToro, a US listing would provide access to a broader range of
investors compared to the British market.
Federal Requirements Violated
The charges arise from eToro’s trading platform, which
facilitated the buying and selling of certain crypto assets classified as
securities. As part of the settlement, eToro has agreed to cease violating
federal securities laws and will limit the range of crypto assets available for
trading.
According to the SEC’s order, eToro has been operating as
both a broker and a clearing agency since at least 2020. The platform allowed
U.S. customers to trade crypto assets considered securities without complying
with registration requirements under federal law.
“This settlement allows us to move forward and focus on
providing innovative and relevant products across our diversified U.S. business.
U.S. users can continue to trade and invest in stocks, ETFs, options and the
three of the largest cryptoassets,” commented Yoni Assia, eToro’s Co-Founder and CEO.
“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,” he continued. “Outside of the United States, eToro users will continue
to enjoy access to over 100 cryptoassets.” He reassured that as a global, multi-asset trading and
investing platform, eToro continues to experience strong growth and remains committed
to becoming a public company in the future.
⚖️ eToro Settles with SEC for $1.5M@eToro has agreed to a $1.5 million settlement with the @SECGov over charges of operating as an unregistered broker and facilitating trades of certain crypto assets as securities.
The SEC’s order highlights eToro’s failure to comply with… pic.twitter.com/5efZ8g7rz0— Mpost Media Group (@mpost_io) September 12, 2024
eToro Agrees to Settlement
In response to the SEC’s order, eToro announced that only
Bitcoin, Bitcoin Cash, and Ether will be available for U.S. customers to trade.
The company also confirmed that users will have 180 days to sell other crypto
assets before they are removed from the platform.
In general, US users are not required to take any action.
Only positions that cannot be transferred to the eToro crypto wallet are
affected. This accounts for less than 3% of the total dollar value of US
customers’ cryptoassets. Positions in cryptocurrencies that are transferable to
the eToro crypto wallet can remain open on the eToro platform indefinitely.
The SEC stated that, without admitting or denying the
findings, eToro has agreed to a cease-and-desist order, to pay a $1.5 million
penalty, and, within 187 days of the order, to liquidate any crypto assets
classified as securities that it cannot transfer to its customers, returning
the proceeds to those customers.
“eToro has been offering regulated securities across the
globe since before the invention of crypto,” said the CEO. “As an early adopter and global
pioneer of cryptoassets as well as a significant player in regulated
securities, it is important for us to be compliant and to work closely with
regulators around the world.”
“We appreciate the importance of regulation to
protect consumers,” Assia reassured. “We now have a clear regulatory framework for cryptoassets in
our home markets of the UK and Europe and we believe we will see similar in the
U.S. in the near future. Once this is in place, we will look to enable trading in
the cryptoassets that meet this framework.”
The Securities and Exchange Commission (SEC) announced today (Thursday)
that eToro USA LLC will pay $1.5 million to settle charges related to operating
an unregistered broker and unregistered clearing agency.
The settlement comes as eToro is considering listing its
shares, with the US as a potential destination. The company is currently
exploring an initial public offering (IPO) in either New York or London.
According to eToro, a US listing would provide access to a broader range of
investors compared to the British market.
Federal Requirements Violated
The charges arise from eToro’s trading platform, which
facilitated the buying and selling of certain crypto assets classified as
securities. As part of the settlement, eToro has agreed to cease violating
federal securities laws and will limit the range of crypto assets available for
trading.
According to the SEC’s order, eToro has been operating as
both a broker and a clearing agency since at least 2020. The platform allowed
U.S. customers to trade crypto assets considered securities without complying
with registration requirements under federal law.
“This settlement allows us to move forward and focus on
providing innovative and relevant products across our diversified U.S. business.
U.S. users can continue to trade and invest in stocks, ETFs, options and the
three of the largest cryptoassets,” commented Yoni Assia, eToro’s Co-Founder and CEO.
“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,” he continued. “Outside of the United States, eToro users will continue
to enjoy access to over 100 cryptoassets.” He reassured that as a global, multi-asset trading and
investing platform, eToro continues to experience strong growth and remains committed
to becoming a public company in the future.
⚖️ eToro Settles with SEC for $1.5M@eToro has agreed to a $1.5 million settlement with the @SECGov over charges of operating as an unregistered broker and facilitating trades of certain crypto assets as securities.
The SEC’s order highlights eToro’s failure to comply with… pic.twitter.com/5efZ8g7rz0— Mpost Media Group (@mpost_io) September 12, 2024
eToro Agrees to Settlement
In response to the SEC’s order, eToro announced that only
Bitcoin, Bitcoin Cash, and Ether will be available for U.S. customers to trade.
The company also confirmed that users will have 180 days to sell other crypto
assets before they are removed from the platform.
In general, US users are not required to take any action.
Only positions that cannot be transferred to the eToro crypto wallet are
affected. This accounts for less than 3% of the total dollar value of US
customers’ cryptoassets. Positions in cryptocurrencies that are transferable to
the eToro crypto wallet can remain open on the eToro platform indefinitely.
The SEC stated that, without admitting or denying the
findings, eToro has agreed to a cease-and-desist order, to pay a $1.5 million
penalty, and, within 187 days of the order, to liquidate any crypto assets
classified as securities that it cannot transfer to its customers, returning
the proceeds to those customers.
“eToro has been offering regulated securities across the
globe since before the invention of crypto,” said the CEO. “As an early adopter and global
pioneer of cryptoassets as well as a significant player in regulated
securities, it is important for us to be compliant and to work closely with
regulators around the world.”
“We appreciate the importance of regulation to
protect consumers,” Assia reassured. “We now have a clear regulatory framework for cryptoassets in
our home markets of the UK and Europe and we believe we will see similar in the
U.S. in the near future. Once this is in place, we will look to enable trading in
the cryptoassets that meet this framework.”
This post is originally published on FINANCEMAGNATES.
