{"id":6217,"date":"2024-09-13T09:30:55","date_gmt":"2024-09-13T09:30:55","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=6217"},"modified":"2024-09-13T09:30:55","modified_gmt":"2024-09-13T09:30:55","slug":"etoros-crypto-service-faces-major-cutback-following-sec-settlement-details","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=6217","title":{"rendered":"eToro\u2019s Crypto Service Faces Major Cutback Following SEC Settlement\u2014Details"},"content":{"rendered":"

eToro, a prominent online trading platform, has settled with the US Securities and Exchange Commission (SEC) and agreed to cease trading nearly all crypto assets for US customers, according to the latest release<\/a> from the SEC.<\/p>\n

The SEC charged eToro with operating as an unregistered broker and clearing agency for facilitating the trading of crypto assets deemed securities.<\/p>\n

As part of the settlement, eToro<\/a> has agreed to pay a $1.5 million penalty and will restrict its US trading services to a limited number of digital currencies.<\/p>\n

SEC Enforcement And eToro\u2019s Response<\/h2>\n

The SEC\u2019s investigation found that since 2020, eToro has allowed US customers to trade crypto assets on its platform without complying with federal securities laws.<\/p>\n

The regulator determined that eToro\u2019s services fell under the scope of broker-dealer and clearing agency regulations because certain crypto assets<\/a> offered on the platform were considered securities.<\/p>\n

In response, eToro has agreed to remove most digital currency assets from its platform and offer only limited options for US traders moving forward.<\/p>\n

Notably, the SEC\u2019s order comes as part of its broader effort to regulate the digital currency industry<\/a> and ensure that trading platforms comply with existing laws governing securities.<\/p>\n

Gurbir S. Grewal, Director of the SEC\u2019s Division of Enforcement, emphasized that eToro\u2019s decision to remove tokens offered as investment contracts from its platform demonstrates a willingness to comply with the established regulatory framework<\/a>. Grewal added:<\/p>\n

This resolution not only enhances investor protection but also offers a pathway for other crypto intermediaries. The $1.5 million penalty reflects eToro\u2019s agreement to cease violating applicable federal securities laws as it continues its U.S. operations.<\/p>\n

Furthermore, as part of the settlement, eToro will allow its U.S. customers to sell their remaining crypto assets within 180 days. After this period, any crypto assets considered securities that have not been sold will be liquidated by eToro, and the proceeds will be returned to customers.<\/p>\n

According to the release, eToro\u2019s agreement to the cease-and-desist order and the imposed penalty was without either admitting or denying the SEC\u2019s findings.<\/p>\n

Future Of eToro And Crypto Asset Trading<\/h2>\n

In the future, eToro\u2019s platform in the US will offer trading in only three major cryptocurrencies\u2014Bitcoin, Bitcoin Cash, and Ethereum. This marks a significant shift<\/a> in the platform\u2019s offerings as it seeks to operate within the SEC\u2019s guidelines.<\/p>\n

The removal of other tokens could impact the company\u2019s user base in the US, as eToro was previously known for providing access to a broad range of digital assets.<\/p>\n

The release revealed that the SEC\u2019s investigation into eToro was conducted by the agency\u2019s Crypto Assets and Cyber Unit. The case involved key officials and other SEC enforcement team members.<\/p>\n

Featured image created with DALL-E, Chart from TradingView<\/p>","protected":false},"excerpt":{"rendered":"

eToro, a prominent online trading platform, has settled with the US Securities and Exchange Commission (SEC) and agreed to cease trading nearly all crypto assets for US customers, according to the latest release from the SEC. The SEC charged eToro with operating as an unregistered broker and clearing agency for facilitating the trading of crypto […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-6217","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/6217"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6217"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/6217\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6217"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6217"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6217"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}