eToro Announces Major Changes to Crypto Trading
- eToro has settled with the SEC and will halt the majority of its cryptocurrency trading.
- The platform will incur a penalty of $1.5 million and will limit its offerings to Bitcoin, Ethereum, and Bitcoin Cash only.
In a recent settlement with the United States Securities and Exchange Commission (SEC), eToro will discontinue most of its cryptocurrency trading operations. According to a press release from the SEC dated September 11, eToro USA has agreed to resolve allegations of functioning as an unregistered broker and clearing agency.
The settlement includes a payment of $1.5 million, and the company has committed to refraining from any further infractions of federal regulations pertaining to unregistered securities.
Future Offerings Only Include Major Cryptocurrencies
As a result of the SEC settlement, eToro has revised its cryptocurrency offerings. Going forward, users in the United States will only have access to three cryptocurrencies: Bitcoin, Ethereum, and Bitcoin Cash.
“Starting September 11, 2024, US customers on eToro will only be able to buy new positions in BTC, BCH, and ETH. New investments in other cryptocurrencies will no longer be permitted,” stated eToro in their official announcement.
For customers holding other cryptocurrencies on eToro, there will be a 180-day window from the date of the SEC’s order to withdraw assets to their eToro wallet, lasting until March 11, 2025.
If customers do not remove their cryptocurrencies by this deadline, eToro will liquidate any remaining assets and return the proceeds, with a notable deadline of March 18, 2025, for users to keep in mind.
