- eToro agrees to halt most cryptocurrency trading activity after settling with the SEC
- The company will pay a $1.5 million fine and delist all tokens except Bitcoin, Ethereum, and Bitcoin Cash
After reaching a settlement with the U.S. Securities and Exchange Commission (SEC), eToro will end most of its cryptocurrency trading activities. The SEC announced on September 12 that eToro USA has agreed to resolve allegations that it operated as an unregistered broker and clearing agency.
As part of the settlement, the trading platform will pay $1.5 million and cease any further violations related to offering unregistered securities under federal law.
The SEC said eToro will now offer only a limited selection of cryptocurrencies on its platform.
“By removing tokens offered as investment contracts from its platform, eToro has chosen to comply with the rules and operate within our established regulatory framework,” said Gurbir S. Grewal, head of the SEC’s enforcement division. “This resolution not only strengthens investor protection but also provides a path forward for other intermediaries in the cryptocurrency space.”
eToro lists only three crypto assets
Under the SEC settlement, eToro has announced changes to its crypto product lineup.
As part of the agreement, the platform will restrict access for U.S. customers to Bitcoin, Ethereum, and Bitcoin Cash only. “Beginning September 11, 2024, eToro users in the United States will only be able to open (buy) new crypto positions in BTC, BCH, and ETH.”
eToro said in its announcement that it will not permit the opening of new positions in any other crypto assets.
From the SEC’s directive date, U.S. customers holding other crypto assets on eToro will have 180 days to withdraw those assets to the eToro Wallet. This withdrawal period runs through March 11, 2025. A key date users should note is March 18, 2025.