The Australian Securities and Investment Commission (ASIC) has sued eToro over problems with its derivatives service contracts.
ASIC has announced that it has filed a lawsuit, explaining that crypto trading platform eToro’s tests on its derivatives contracts were unsatisfactory. Faced with ASIC from the contract for difference (CFD) product issue, eToro created an atmosphere of panic among its users. The general statement of ASIC is to target a very wide market and violate the design-distribution rules regarding the CFD product.
High risk of eToro addressed
ASIC stated that the CDFs offered by eToro are high-risk and variable. Making a statement by addressing the tests performed on the platform, ASIC said;
“eToro’s screening test failed. The CFD product is of no use except to customers for whom it would probably not be suitable. For example, customers should be able to change their statements without limitations. In addition, questions should have been asked about possible customer failures.”
Tensions are tight between eToro and the Australian regulator. The results of ASIC’s decision, which put eToro on its radar due to customer problems, service systems and contracts, are eagerly awaited.
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