Global brokerage firm eToro is expanding its cryptocurrency services worldwide following regulatory approval in Europe.
eToro announced on September 21 that it has received registration as a Crypto Asset Service Provider (CASP) from the Cyprus Securities and Exchange Commission (CySEC).
This registration will allow eToro to offer regulated cryptocurrency services to all European Union (EU) countries through a subsidiary known as eToro Europe Digital Assets. However, it's important to note that the registration will become effective only when the EU Markets in Crypto-Assets Regulation (MiCA) is implemented, which is expected in December 2024.
Hedva Ber, eToro's Deputy CEO, expressed the company's readiness to embrace the new era of cryptocurrency following MiCA's implementation. He emphasized the significance of Europe to eToro due to the substantial number of its users located in the region. Several other prominent cryptocurrency companies, like Bybit, have expanded their operations within the EU by obtaining CySEC registration. However, Binance chose a different path by filing for deregistration in Cyprus, citing a desire to concentrate on "larger markets."
Prior to this, eToro had secured regulatory approval for cryptocurrency services in Spain. In July 2023, the Bank of Spain granted eToro the ability to register as a service provider for virtual currency exchange into fiat currencies and e-wallet custody services. Additionally, eToro Obtained digital asset service provider registration from the French financial regulator, Autorité des Marchés Financiers.
eToro made headlines earlier in 2023 when it partnered with Elon Musk's X (formerly known as Twitter) to assist the social media platform in launching cryptocurrency and stock trading. However, the company also faced legal challenges, including a lawsuit from the Australian Securities and Investments Commission related to certain trading products' volatility.
Overall, eToro's expansion into the EU underscores the growing importance of regulatory compliance in the cryptocurrency industry, particularly in regions with a substantial user base like Europe.
