Financial trading platform eToro has recently voiced its commitment to cryptocurrency markets and willingness to cooperate with regulators worldwide. This statement comes amidst the Securities and Exchange Commission (SEC) lawsuits against Binance and Coinbase, and highlights the importance of offering users access to a diversified range of asset classes, including digital currencies. The platform currently supports trading for 80 cryptocurrencies, some of which have been accused by the SEC of being unregistered securities.
Since its inception in Israel in 2007, eToro has evolved from a foreign exchange platform into a formidable contender in the cryptocurrency space. Its US platform, launched in 2018, allows users to trade a wide range of digital assets. Furthermore, the company announced a partnership with Twitter in April 2021, enabling users to invest in cryptocurrencies via eToro and access real-time price data.
In response to the rapidly evolving regulatory landscape surrounding digital currencies, eToro has stated that it has a framework in place allowing for a constant review of the digital assets offered on its platform. This proactive approach may help maintain compliance while avoiding potential conflicts with regulators.
eToro is not the only platform aiming to bridge the gap between traditional stock trading and cryptocurrency assets. In 2018, Robinhood introduced their Robinhood Crypto service, offering users access to Bitcoin and Ethereum. Today, Robinhood Crypto offers 18 different tokens, including those implicated in the SEC’s lawsuits. In light of these legal actions, Robinhood’s Chief Legal Officer announced that the company is reviewing its asset offerings to ensure compliance.
Binance.US has also announced changes to its platform, as a result of the SEC lawsuits. Over 100 “Advanced Trading” pairs will be removed from its platform, many of which include tokens dubiously deemed unregistered securities. Moreover, Binance.US is modifying its “Buy, Sell & Convert” offering, limiting trade amounts to $10,000 for certain tokens. No official explanation has been provided by the company, although it is presumed that these modifications aim to address the emergency motion filed by the SEC to freeze the exchange’s corporate assets.
As developments in the cryptocurrency sector continue to unfold, collaboration between trading platforms and regulators will be paramount in shaping the future of the industry. By working together, they can hope to strike a balance that enables ordinary investors to access a wide range of asset classes while maintaining legal and regulatory compliance.