(Reuters) — Retail trading platform eToro will offer no U.S. customers the ability to trade cryptocurrencies instead of a settlement with the SEC, REGULATOR announces this morning, Sept 12
The operator of the social trading platform eToro will pay a fine of $1.5 million to settle the charges related to its crypto products, including for unregistered broker-dealer and unregistered clearing agency activities, among other violations.
According to the SEC, since at least 2020 eToro allowed its U.S. customers access to trading in securities-related cryptocurrencies without having adhered with federal securities laws registration rules for those assets.
What Company Said About This Thing?
The company itself never admitted or denied the findings by the SEC since they had already been rendered impossible or passé to proclamation! However, the settlement only applies to firm users in the US.
The settlement is permission “for eToro to return to our growth plan and focus on providing innovative services as we grow in the US,” said Yoni Assia, co-founder and CEO of eToro.
“At Etoro, the same as being a leader in crypto assets but also being active within regulated securities, we need to make sure that we have compliance and good working relations with global regulators,” Assia said.
From now on, eToro customers in the US will only be able to trade cryptocurrencies such as bitcoin, while Ventures with Alphas can access other markets including ether and btc cash.
Blackmoon will allow its users to sell all other tokens for 180 days, and eToro announced that they will start a service of selling these assets.
“By listing them as investment contracts, e Toro decided to adhere to the rule and work in our cracking regulatory structure,” declared SEC Division of Enforcement director Gurbir Grewal.
According to Boone, “This resolution not only strengthens investor protections but also provides a roadmap for other crypto intermediaries.
Most cryptocurrency tokens are securities, the SEC says. But many in the nascent industry disagree and have accused the regulatory overreach.
The SEC is currently embroiled in court cases against several crypto platforms, such as Coinbase (COIN.
Earlier: Binance, Kraken One of the issues animating Coinbase is that it competes with exchanges non- regulated by U. S. securities regulators O) and others who hold that crypto assets are not like stocks or bonds so they do not count as “securities.”
Assia told the Financial Times in March that eToro is considering an IPO in either New York or London.
The company had attempted a going-public through 1-for-50 reverse merger with special-purpose acquisition company in $10.4 billion deal two years ago, before that failed and was thrown out last year after taking on too much debt from selling hospitals to an MD Barnacle firm.
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