eToro Agrees to Pay $1.5 Million to Settle SEC Charges

The Securities and Exchange Commission (SEC) announced that eToro USA LLC has agreed to pay a $1.5 million penalty to settle charges that it operated a crypto asset trading platform without registering as a broker-dealer and clearing agency. As part of the settlement, eToro agreed to cease violating relevant federal securities laws and will only offer limited crypto asset trading.

According to the SEC's order, since 2020, eToro provided American customers with the ability to buy and sell crypto assets as securities through its online trading platform, but failed to comply with registration requirements under federal securities laws.

eToro has publicly stated that going forward, US customers will only be able to trade Bitcoin, Bitcoin Cash, and Ethereum on its platform. For other crypto assets, eToro will provide customers with a selling function within 180 days of the SEC order being issued.