The post SEC Restricts eToro’s Cryptocurrency Services appeared on BitcoinEthereumNews.com.

The U.S. Securities and Exchange Commission (SEC) has intensified its regulatory measures against cryptocurrency platforms, leading to significant limitations for eToro, a widely used trading platform. eToro has agreed to a $1.5 million settlement and will now limit its offerings to a select trio of cryptocurrencies: Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH). The regulatory body has increasingly classified most cryptocurrencies under the umbrella of securities, prompting legal actions against exchanges and platforms to enforce compliance with U.S. securities laws. What Led to eToro’s Restrictions? The SEC’s recent actions are based on the assertion that eToro has been offering unregistered securities to American customers since 2020. Acting as both a broker and clearing house, eToro failed to adhere to federal securities registration mandates, according to the SEC. This oversight has led to the recent historic ruling, allowing the platform to facilitate trades only in BTC, BCH, and ETH. The implication of this decision is far-reaching, as these cryptocurrencies are being treated as commodities rather than securities, unlike many other digital assets. How Does This Affect U.S. Cryptocurrency Traders? With the newly imposed restrictions, U.S.-based traders using eToro will experience a narrowed scope of available assets. The decision is part of a broader SEC strategy to tighten cryptocurrency regulation, focusing on compliance and investor protection. By restricting access to only Bitcoin, Bitcoin Cash, and Ethereum, the SEC underscores its stance on which digital currencies it deems safer or less likely to pose regulatory risks. Key Takeaways from SEC’s Actions – eToro is fined $1.5 million and limited to offering only BTC, BCH, and ETH in the U.S.– The SEC enforces stricter compliance on cryptocurrency platforms, pushing them to register offerings as securities.– Certain cryptocurrencies, like BTC, BCH, and ETH, are regarded as commodities, setting them apart from others in regulatory…

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Filed under: News - @ September 12, 2024 5:20 pm