The Securities and Exchange Commission (SEC) announced today
that eToro USA LLC will pay $1.5 million to settle charges related to operating
an unregistered broker and unregistered clearing agency.
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.
Federal Requirements Violated
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 US business.
US users can continue to trade and invest in stocks, ETFs, options and the
three of the largest cryptoassets,” Yoni Assia, eToro’s Co-Founder and CEO,
commented.
“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. 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.”
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.
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. 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. 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
US in the near future. Once this is in place, we will look to enable trading in
the cryptoassets that meet this framework,” Assia added.
The Securities and Exchange Commission (SEC) announced today
that eToro USA LLC will pay $1.5 million to settle charges related to operating
an unregistered broker and unregistered clearing agency.
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.
Federal Requirements Violated
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 US business.
US users can continue to trade and invest in stocks, ETFs, options and the
three of the largest cryptoassets,” Yoni Assia, eToro’s Co-Founder and CEO,
commented.
“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. 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.”
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.
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. 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. 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
US in the near future. Once this is in place, we will look to enable trading in
the cryptoassets that meet this framework,” Assia added.
This post is originally published on FINANCEMAGNATES.
