eToro

eToro eyes U.S. IPO with Goldman Sachs support: report

Published

2 weeks ago

December 6, 2024

eToro, a trading platform for stocks and cryptocurrencies, is working with Goldman Sachs to plan an initial US public offering.

The company could go public as early as the second quarter of 2025, but the timing may change, according to unnamed sources familiar with the matter, Bloomberg reports.

eToro hopes to exceed the $3.5 billion valuation it achieved during a private funding round last year. Details about the IPO, including other banks that may be involved, remain under discussion.

SEC vs. eToro

The platform faced regulatory issues in the U.S., settling allegations in September that it had operated as an unregistered broker. As part of the settlement, eToro agreed to pay $1.5 million and restrict cryptocurrency offerings for U.S. customers.

The SEC’s complaint claimed that eToro operated as an unlicensed broker and clearing agency since at least 2020.

An IPO would occur amid rising interest in cryptocurrencies, partly driven by President-elect Donald Trump’s decision to appoint a crypto-friendly businessman to lead the U.S. Securities and Exchange Commission.

This shift could pave the way for more crypto-focused companies to go public. Bitcoin (BTC) prices have surged past $100,000, reflecting this renewed enthusiasm.

eToro’s platform allows users to trade various assets, including cryptocurrencies, and follow the trades of successful investors. It has over 38 million registered users worldwide.

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cryptocurrency

EToro to cease all crypto trading except BTC, BCH, ETH

Published

3 months ago

September 12, 2024

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EToro reached a $1.5 million settlement with the U.S. Securities and Exchange Commission over alleged violations of federal securities laws.

According to an greement disclosed by the SEC, eToro also agreed to cease nearly all cryptocurrency trading and transactions for U.S. customers. Moving forward, American users can only trade Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH) on the platform.

Following the order issued on Sept. 12, the trading venue has 187 days to offboard all other cryptocurrencies and liquidate existing assets. Customers will receive proceeds equal to their balance.

The SEC’s complaint claimed that eToro operated an unlicensed broker and clearing agency since at least 2020. Although the exchange reached a settlement with the SEC, it declined to admit or deny the SEC’s allegations. Gurbir S. Grewal, director of the SEC’s enforcement division, said eToro’s cooperation provides a pathway for other crypto intermediaries to comply with U.S. rules.

By removing tokens offered as investment contracts from its platform, eToro has chosen to come into compliance and operate within our established regulatory framework… The $1.5 million penalty reflects eToro’s agreement to cease violating applicable federal securities laws as it continues its U.S. operations.
Gurbi S. Grewal, director of the SEC’s enforcement division

While the platform refrained from debating the security status of cryptocurrencies, the settlement may be used as a precedent in future cases. Separating BTC, BCH, and ETH from other cryptocurrencies suggests the SEC views most, if not all, other digital assets as securities.

EToro’s past decisions reinforce this view among some service providers. In 2020, when the SEC sued Ripple, eToro delisted (XRP) and three other cryptocurrencies in response. Still, the company’s crypto services proceeded in other markets. As reported, the firm bagged a CySEC CASP approval to offer digital asset facilities in all EU countries.

Meanwhile, the SEC and other U.S. regulatory watchdogs continued a sweeping crackdown across the burgeoning blockchain sector. SEC fines against crypto entities have exceeded $7.4 billion since 2013.

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