{"id":82552,"date":"2023-08-03T11:27:51","date_gmt":"2023-08-03T08:27:51","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=82552"},"modified":"2025-09-12T05:45:43","modified_gmt":"2025-09-12T02:45:43","slug":"australian-regulator-sues-etoro-over-high-risk-product","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/australian-regulator-sues-etoro-over-high-risk-product\/","title":{"rendered":"Australian Regulator Sues eToro Over High-Risk Product"},"content":{"rendered":"<p>The Australian Securities and Investments Commission (ASIC)<a href=\"https:\/\/download.asic.gov.au\/media\/s2qdjuat\/23-204mr-asic-v-etoro-concise-statement.pdf\"> filed a lawsuit<\/a> against the eToro platform over claims about its CFD lineup, which allow speculation, including on cryptocurrencies.<\/p>\n<p>Regulator<a href=\"https:\/\/asic.gov.au\/about-asic\/news-centre\/find-a-media-release\/2023-releases\/23-204mr-asic-sues-etoro-in-its-first-design-and-distribution-action-to-protect-consumers-from-high-risk-cfd-products\/\"> said<\/a> that eToro Aus Capital breached its obligations to develop and distribute the instrument. In particular, the regulator described the product\u2019s target market as \u201ctoo broad\u201d. ASIC also noted that there were no difficulties in passing the screening test, which does not exclude users for whom CFDs may not be suitable.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;If a retail client had moderate risk tolerance, but was not an experienced investor and did not understand the risks of trading the instrument, he would still fall within the target market,&#8221;<\/em> the statement said.<\/p>\n<\/blockquote>\n<p>The proceedings cover the period from 5 October 2021 to 29 July 2023. They said that eToro AUS is now operating with a revised target market definition for CFDs, they added.<\/p>\n<p>In April 2023 ASIC<a href=\"https:\/\/forklog.com\/en\/news\/australian-regulator-cancels-binance-australia-derivatives-license\"> revoked<\/a> the license of Binance Australia Derivatives. By 21 April its users were required to close all derivative positions.<\/p>\n<p>In June 2023, eToro<a href=\"https:\/\/forklog.com\/en\/news\/etoro-bars-us-clients-from-trading-algo-mana-matic-and-dash\"> halted<\/a> the purchase and sale<a href=\"https:\/\/forklog.com\/en\/news\/what-is-algorand-algo\"> of Algorand<\/a>,<a href=\"https:\/\/forklog.com\/en\/news\/what-is-decentraland-mana\"> Decentraland<\/a>, <a href=\"https:\/\/forklog.com\/en\/news\/what-is-polygon-matic\"> Polygon<\/a> and Dash for US clients, as the <span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> classified them as securities.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Australian Securities and Investments Commission (ASIC) has filed a suit against the eToro platform over claims about its CFD product lineup.<\/p>\n","protected":false},"author":1,"featured_media":82553,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[108,826,36],"class_list":["post-82552","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-australia","tag-etoro","tag-regulation"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/82552","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=82552"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/82552\/revisions"}],"predecessor-version":[{"id":82554,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/82552\/revisions\/82554"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/82553"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=82552"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=82552"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=82552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}