SEC Slams $1.5 Million Fine On eToro US For Crypto Listing Violations
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The Securities and Exchange Commission (SEC) has slammed a $1.5 million fine on the trading platform eToro as charges concerning the operation of an unregistered clearing agency and brokerage firm.
This is coming at the time eToro wants to list its shares, with a potential destination being the US. eToro is looking at listing its shares and offering them in an initial public offering (IPO) in either London or New York.
eToro Has Agreed To Follow SEC Regulations For Crypto Assets
eToro noted that listing its shares in the US will enable the trading platform to offer more products and services to a broad range of investors compared to listing its shares in the UK. The firm believes that the US presents a better business opportunity than the UK for the kind of business it does.
Now, eToro is expected to settle the SEC for its violation of its policies. The firm is accused of facilitating the sale and purchase of some cryptocurrencies classified as securities. Following the charges, eToro has agreed to stop violating federal security laws. The firm also agreed to reduce the number of cryptocurrencies it will make available for trading on its platform.
The SEC noted that eToro has been carrying out its business as both a clearing agency and a broker since 2020. The firm enabled its US-based clients to buy and sell cryptocurrencies treated as securities without seeking the necessary registration for such or complying with the existing laws.
Co-founder and Chief Executive Officer of eToro, Yoni Assia, commented on the development. He stated that the recent settlement will enable the company to go on with its business and concentrate on offering relevant and innovative products across the diversified markets in the US. He added that the firm will continue offering options, ETFs, stocks, and the major cryptocurrencies to US users.
eToro Says It Will Only Offer Three Major Crypto Assets To The US Market
Assia added that eToro is offering its services to more than 38 million registered users from over 75 countries. It will also continue to offer more than 100 crypto assets to users outside the US.
The company is committed to offering improved services and will become a public company in the future. Assia stated that eToro will continue to experience strong growth as it also tries to strengthen its regulatory commitment and strict adherence to the law guiding the operation of digital assets in the region it operates.
eToro said that it will offer only Ethe, Bitcoin, and Bitcoin Cash to the US market. In line with the charges, the firm has given users up to 180 days to sell other crypto assets they have on the platform as it wants to follow the SEC’s guidelines.
