eToro agrees to pay $1.5 million fine, limit crypto assets to operate in the US

eToro’s adjustment aims to meet the SEC’s regulatory requirements by avoiding the sale of tokens that are classified as investment contracts and therefore subject to US securities laws.

eToro pays multi-million dollar fine to US SEC

According to Gurbir S. Grewal, director of the SEC’s enforcement division, eToro’s decision to remove certain tokens from its platform is an important move to align itself with the established regulatory framework.

“By removing tokens offered as investment contracts from its platform, eToro has chosen to comply with the rules and operate within our regulatory framework. This resolution not only strengthens investor protections but also provides a path for other cryptocurrency intermediaries to do the same,” said Grewal.

In addition to the financial penalty, eToro has committed to cease violating applicable federal securities laws while continuing its operations in the United States. The $1.5 million payment is part of the settlement to settle the lawsuit.

As part of the deal, eToro has agreed to sell all of its remaining cryptocurrencies within the next 180 days. According to Yoni Assia, co-founder and CEO of eToro, the deal will have a small impact on the company’s global operations.

“Outside of the United States, eToro users will continue to have access to over 100 crypto assets. As a global multi-asset trading and investment platform, we continue to experience strong growth and remain committed to becoming a public company in the future,” said Assia.

The SEC has been increasing its scrutiny of cryptocurrency companies in recent years as the market grows and more investors enter the sector. The regulatory body’s goal is to ensure that trading platforms operate within established guidelines to protect investors.