eToro’s Crypto Service Faces Major Cutback Following SEC Settlement—Details
eToro has settled with the US Securities and Exchange Commission (SEC) and will cease trading nearly all crypto assets for US customers. The SEC charged eToro for operating as an unregistered broker and clearing agency by facilitating trades of crypto assets classified as securities. As part of the settlement, eToro will pay a $1.5 million penalty and limit its US trading services to three cryptocurrencies: Bitcoin, Bitcoin Cash, and Ethereum. The SEC's investigation revealed that eToro allowed US customers to trade crypto assets without adhering to federal securities laws since 2020. U.S. customers will have 180 days to sell remaining crypto assets, after which unsold securities will be liquidated. eToro's compliance with the SEC's regulatory framework marks a significant shift in its operations.
