With more than 30 million users worldwide, the platform eToro has become one of the largest online brokers. However, those activities cryptocurrencies of the platform are not to the taste of the US SEC. A situation that is pushing eToro to end its crypto activities in the United States.
Faced with the SEC, eToro complies
If you follow cryptocurrency news closely, you will know that the US Securities and Exchange Commission (SEC) does not look favorably on cryptocurrencies.
So on September 12, the SEC revealed that it did reached an agreement with the eToro platform. For once, the SEC accuses the platform of conducting a service of an unregistered crypto asset broker. Note that eToro accepted this settlement without admitting or denying the SEC’s allegations.
“The SEC regulation finds that, at least since 2020, eToro has operated as a broker-dealer and clearing agency providing US customers with the ability to trade crypto-assets offered and sold as securities through the eToro online trading platform, but eToro has not complied. with the registration provisions of the federal securities laws. »
Fined $1.5 million and stopped crypto activities
In practice, eToro agreed to pay a $1.5 million fine settle the charges against her.
In addition, the platform agreed to end your crypto activities on the cryptocurrency part. That’s why she “will only make available a limited set of cryptoassets” as explained by the SEC. Therefore, eToro will only offer Bitcoin (BTC), Bitcoin Cash (BCH) and Ether (ETH) to its users. As for other assets, users have 180 days to sell them before eToro stops offering them.
“eToro has publicly announced that it will offer its customers the option to sell all other cryptoassets only for 180 days from the publication of the SEC order. »
The SEC is also facing justice. So, Gary Gensler, the current chairman of the SEC, has been investigated by several members of the US Congress. He criticizes the SEC president for favoring his political camp in the SEC’s hiring policy.
