US-based social investing platform eToro has agreed to pay $1.5 million and halt trading in almost all crypto assets to settle Securities and Exchange Commission charges.
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The SEC accused eToro of operating an unregistered broker and clearinghouse in connection with its trading platform that facilitated the purchase and sale of certain crypto assets as securities.
The company has now agreed that the only crypto assets US customers can trade on the company’s platform will be Bitcoin, Bitcoin Cash and Ether. Customers can sell all other crypto assets only 180 days after the SEC order is issued.
Gurbir Grewal, Director of the SEC’s Enforcement Division, said: “By removing the tokens offered as investment contracts from its platform, eToro has chosen to comply with the regulations and operate within our established regulatory framework.
“This resolution not only improves investor protection, but also provides an avenue for other crypto intermediaries.”