Bitcoin

The U.S. Securities and Exchange Commission (SEC) has settled with eToro USA LLC, imposing a $1.5 million penalty for operating as an unregistered broker and clearing agency.&nbsp; 
This <a href="https://www.sec.gov/newsroom/press-releases/2024-125" target="_blank" rel="noreferrer noopener nofollow">action</a> stems from eToro’s failure to comply with federal registration requirements while facilitating the trading of crypto assets deemed as securities. The SEC’s order marks a significant enforcement step in regulating the cryptocurrency industry, emphasizing the need for compliance with securities laws. 
Since at least 2020, eToro’s U.S. customers have had the ability to trade various crypto assets through its platform. However, the SEC found that eToro did not comply with federal registration requirements, violating securities laws. 
As part of the settlement, eToro will now limit U.S. trading to Bitcoin, Bitcoin Cash, and Ether. Customers will have a 180-day period to sell other crypto assets before they are removed from the platform. Any assets classified as securities that cannot be transferred will be liquidated, with proceeds returned to customers within 187 days. 
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, highlighted that the settlement enhances investor protection and offers a compliance framework for other crypto intermediaries. The SEC’s investigation, led by Jon Daniels, Alison Levine, and Tiantong Wen, with oversight from Mark R. Sylvester and Jorge G. Tenreiro, reflects a comprehensive review of eToro’s operations. 
eToro has agreed to the cease-and-desist order but neither admitted nor denied the SEC’s findings. The settlement underscores the importance of adhering to federal securities laws and aims to ensure that eToro’s future operations align with regulatory standards. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 Also Read: <a href="https://www.cryptotimes.io/2023/09/21/etoro-secures-cyprus-crypto-registration-for-eu-expansion/" target="_blank" rel="noreferrer noopener">eToro Secures Cyprus Crypto Registration for EU Expansion</a> 
</blockquote>

eToro Settles with SEC for $1.5M Over Crypto Trading Charges

The Crypto Times

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