Popular stock trading platform eToro is making significant changes to its crypto services in the US. After reaching a settlement with the US Securities and Exchange Commission (SEC), eToro will stop trading for almost all cryptocurrencies.
SEC Charges Against eToro
The SEC charged eToro with running an unregistered brokerage and clearing agency related to its crypto trading platform. To resolve these charges, eToro agreed to pay a $1.5 million fine, according to the SEC’s announcement on September 12.
As part of the settlement, eToro has agreed to restrict the cryptocurrencies available for trading in the US. Going forward, only Bitcoin, Bitcoin Cash, and Ethereum will be available to its US customers. Those holding other crypto assets will have up to 180 days from September 12 to sell them.
Not eToro’s First Regulatory Issue
This isn’t the first time eToro has faced regulatory scrutiny. In April, the Philippines’ SEC also accused the platform of offering unregistered securities in the country.
These recent developments show increasing regulatory pressure on trading platforms dealing in cryptocurrencies.
