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Israeli trading platform eToro has reached a settlement with the U.S. Securities and Exchange Commission (SEC), under which it agreed to a $1.5 million penalty and plans to limit access to the majority of its crypto trading to U.S. customers.

The SEC claimed that since 2020, eToro was operating as an unregistered broker and unregistered clearing agency, and was selling crypto in violation of U.S. federal securities rules.

Although eToro did not admit guilt in the settlement, the company agreed to liquidate crypto offered or sold as securities that it cannot transfer to customers.

“eToro has agreed to cease and desist from violating the applicable federal securities laws and will make only a limited set of crypto assets available for trading,” the SEC said in an announcement.

“By removing tokens offered as investment contracts from its platform, eToro has chosen to come into compliance and operate within our established regulatory framework. This resolution not only enhances investor protection, but also offers a pathway for other crypto intermediaries,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement.

“The $1.5 million penalty reflects eToro’s agreement to cease violating applicable federal securities laws as it continues its U.S. operations,” Grewal added.

“It is important for us to be compliant and to work closely with regulators around the world," eToro CEO Yoni Assia said in response to the SEC settlement. "We now have a clear regulatory framework for crypto-assets in the U.K. and Europe and we believe we will see similar in the U.S. in the near future. Once this is in place, we will look to enable trading in the crypto-assets that meet this framework.”

While U.S. customers will no longer be able to trade most crypto assets on eToro, the company said that bitcoin, bitcoin cash, and ether will still be available for trading. The company currently has more than 35 million users across over 100 countries.