On Thursday, the United States Securities and Exchange Commission announced its latest settlement with a crypto company. The SEC and Israel-based eToro have agreed that the crypto company will pay $1.5 million in fines for operating as an unregistered trading platform.
eToro to shut down nearly all crypto trading
In a statement, the SEC claimed that eToro had operated as an unregistered broker and an unregistered clearing agency while trading certain cryptos as securities.
With matters regarding the settlement, Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, said:
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 […] The $1.5 million penalty reflects eToro’s agreement to cease violating applicable federal securities laws as it continues its U.S. operations.
The SEC
In the last few years, the SEC has fought against several key companies in the crypto industry. These actions have resulted in a string of high-profile lawsuits against companies such as Binance, Coinbase, and Kraken.
Now, the settlement notes that the platform “eToro has agreed to cease and desist from violating the applicable federal securities laws and will make only a limited set of crypto assets available for trading.” According to the agency, the firm will only be allowed to offer Bitcoin, Ethereum, and Bitcoin cash trading options to its users.
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Source: https://www.cryptonewsz.com/etoro-settles-sec-lawsuit-and-limits-trading/