In a strategic move to bolster its global cryptocurrency services, eToro, the crypto-friendly brokerage firm, has secured regulatory approval in Europe. This significant development comes as eToro attains a Crypto Asset Service Provider (CASP) registration from the Cyprus Securities and Exchange Commission (CySEC), marking a pivotal moment for the company.
Streamlined European Expansion
eToro’s newly acquired CASP registration grants the firm the authority to offer regulated cryptocurrency services across all European Union (EU) countries through a single entity named “eToro Europe Digital Assets.” However, the activation of this registration hinges on the enforcement of the EU’s Markets in Crypto-Assets Regulation (MiCA), scheduled for December 2024.
Hedva Ber, eToro’s Deputy CEO, expressed the company’s readiness for the forthcoming crypto landscape, stating that eToro is “100% ready to embrace a new era for crypto once MiCA comes into effect next year.” Highlighting the significance of Europe for eToro, Ber emphasized that the majority of the platform’s user base resides in this region.
eToro’s move aligns with the trend of major crypto firms seeking to expand their presence within the EU by securing CySEC registration. Notably, Bybit exchange is among the companies that have pursued a similar path. In contrast, Binance sought deregistration in Cyprus in June, citing a desire to focus on “larger markets.”
Regulatory Milestones and Partnerships
This recent regulatory approval in Cyprus follows a series of notable milestones for eToro, including approval by the Bank of Spain in July 2023 to offer exchange of virtual currency for fiat currency and electronic wallet custody services. Additionally, eToro previously obtained a digital asset service provider registration from the French financial regulator, the Autorité des Marchés Financiers. eToro also made headlines in April 2023 by partnering with Elon Musk’s X (formerly Twitter) to facilitate crypto and stock trading on the social media platform.
While eToro continues to expand its global footprint, it has faced legal challenges in Australia. In August, the Australian Securities and Investments Commission filed a lawsuit against eToro, citing concerns related to “volatile” trading products.