Crypto company eToro USA settled charges that it operated an unregistered broker and clearing agency in connection with its crypo trading platform allowing the buying and selling of certain crypto assets as securities, according to the SEC today.
The company paid a $1.5 million settlement and agreed to cease breaking applicable securities laws, according to the SEC press release.
“By removing tokens offered as investment contracts from its platform, eToro has chosen to come into compliance and operate within our established regulatory framework. This resolution not only enhances investor protection, but also offers a pathway for other crypto intermediaries,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement.
The platform will now restrict itself to trading in Bitcoin, Bitcoin Cash and Ether. Investors have 187 days to liquidate any crypo assets being offered and sold as securities.
By Staff
