- eToro has agreed to suspend most of its cryptocurrency trading activities following a settlement with the U.S. Securities and Exchange Commission (SEC).
- The firm will pay a $1.5 million fine and delist all coins except Bitcoin, Ethereum, and Bitcoin Cash.
eToro will wind down the majority of its cryptocurrency trading services in the United States as part of a settlement with the U.S. Securities and Exchange Commission. According to the SEC’s press release on September 12, eToro USA settled charges alleging it operated as an unregistered broker and clearing agency. As part of the agreement, the trading platform will pay $1.5 million and cease activities related to offering unregistered securities.
The SEC noted that eToro will continue to offer only a limited set of cryptocurrencies on its platform going forward.
“By removing tokens offered as investment contracts from the platform, eToro has chosen to operate within a well-established regulatory framework,” said Gurbir S. Grewal, Director of the Enforcement Division at the SEC.
“This resolution not only strengthens investor protections but also paves the way for other crypto broker-dealers.”
eToro will list only three digital assets
Following the settlement with the SEC, eToro announced it will restrict the cryptocurrencies available to its U.S. customers. Under the terms of the agreement, the platform will permit access only to Bitcoin (BTC), Ethereum (ETH), and Bitcoin Cash (BCH) for U.S.-based users.
“Effective September 11, 2024, eToro users residing in the United States may open (buy) new cryptocurrency positions only in BTC, BCH, and ETH,” eToro said in its announcement.
Users in the U.S. will no longer be able to open new positions in any other cryptocurrencies. U.S. customers who currently hold other digital assets on eToro will have 180 days from the SEC’s order date to withdraw those assets to an eToro Wallet.
The withdrawal deadline is March 11, 2025. If assets remain after that date, eToro will liquidate any undistributed cryptocurrencies within a week and refund the proceeds to customers. An important date for users to note is March 18, 2025.