eToro Faces Lawsuit in Australia for 'High-risk' Trading Activity
The Australia n Securities and Investments Commission [ ASIC ] has initiated legal proceedings against eToro. The recent lawsuit focuses on eToro’s contract for different [CFD] products. According to ASIC , the cryptocurrency firm failed to perform comprehensive screening tests before offering its “high-risk” leveraged derivative contracts to retail investors. The financial regulator took to Twitter to announce the lawsuit and also called out the exchange. ASIC is suing eToro for allegedly breaching design and distribution obligations and their licence obligations to act efficiently, honestly and fairly #CFD — ASIC Media (@asicmedia) August 2, 2023 ASIC describes eToro’s CFD products as a leveraged derivative contract enabling clients to speculate on fluctuations in the value of an underlying asset. This may include foreign exchange rates, stock market indices, individual equities, commodities, or cryptocurrencies. Currently, eToro offers all of the ...