eToro US Halts Most Crypto Trading After SEC Settlement

The popular trading platform agrees to pay $1.5 million and limit crypto trading in the US to Bitcoin, Bitcoin Cash, and Ether.

Stock and crypto trading platform eToro is making significant changes to its cryptocurrency services in the United States following a settlement with the U.S. Securities and Exchange Commission (SEC). The company was accused of operating as an unregistered broker and clearing agency, resulting in a $1.5 million settlement with the regulatory body.

On September 12, the SEC announced the settlement, which will see eToro drastically scale back its crypto offerings in the U.S. Moving forward, eToro US customers will be limited to trading only three cryptocurrencies: Bitcoin (BTC), Bitcoin Cash (BCH), and Ether (ETH). In addition to this, users will be granted a 180-day window, starting from September 12, to sell off any other crypto assets they currently hold.

The SEC charged eToro with failing to register its crypto brokerage and clearing services as required by U.S. securities laws. The platform had been facilitating the trading of several crypto assets without the appropriate regulatory clearance, according to the commission.

eToro’s legal challenges are not confined to the U.S. Earlier this year, in April, the company faced similar regulatory scrutiny from the Philippines Securities and Exchange Commission. In that case, the platform was accused of offering unregistered securities in the country.

This latest development adds to the increasing regulatory pressure on crypto platforms operating in the U.S. As authorities aim to tighten control over the rapidly evolving digital assets market, companies like eToro are being forced to comply with stricter guidelines or face penalties and limitations on their services.

photo source / Blockonome