eToro Pays $1.5 Million Fine to the U.S. Securities and Exchange Commission

According to the announcement from the U.S. Securities and Exchange Commission (SEC) on Sept. 12, eToro has agreed to pay a $1.5 million to settle the charges filed by the SEC.

The retail trading platform will also stop offering almost all cryptocurrencies to U.S. customers as a part of the settlement. After the regulator's order, eToro must liquidate all crypto assets sold as securities and return the benefit to the relevant customers within 187 days.

The SEC said eToro has been offering cryptocurrency trading services to U.S. customers through its online trading platform since at least 2020, yet failed to comply with the registration provisions of the federal securities laws.

The only crypto assets that eToro can offer under the federal securities laws include Bitcoin, Bitcoin cash, and Ether, but has publicly announced that it offers all crypto assets to U.S. customers.

“By removing tokens offered as investment contracts from its platform, eToro has chosen to come into compliance and operate within our established regulatory framework,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement.

“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.”