eToro’s Crypto expansion strategy takes a step forward with approval in cyprus

eToro's Crypto expansion strategy takes a step forward with approval in cyprus

eToro, a cryptocurrency-friendly brokerage firm, is gearing up for global expansion in the crypto services sector following its recent regulatory approval in Europe. The company has secured a Crypto Asset Service Provider (CASP) registration from the Cyprus Securities and Exchange Commission (CySEC), according to an official announcement made on September 21.

This registration empowers eToro to provide regulated crypto services across all European Union countries through a single entity known as eToro Europe Digital Assets. The approval is set to become effective upon the enforcement of the EU’s Markets in Crypto-Assets Regulation (MiCA) in December 2024.

Hedva Ber, eToro’s Deputy CEO, expressed the company’s readiness for the new crypto era, particularly once MiCA becomes applicable next year. Ber emphasized the significant importance of Europe for eToro since the majority of its user base resides in the region.

Several other prominent crypto firms, like the Bybit exchange, have also been expanding their presence in the European Union by obtaining CySEC registration. In contrast, Binance applied for deregistration in Cyprus in June, citing its intention to focus on “larger markets.”

eToro’s recent crypto approval in Cyprus adds to its regulatory achievements, including one in Spain, where the Bank of Spain approved its registration as a virtual currency exchange service provider for fiat currency and electronic wallet custody services in July 2023. Additionally, eToro secured a digital asset service provider registration from the French financial regulator, the Autorité des Marchés Financiers.

eToro, a major player in social trading and multi-asset investment, gained attention in April 2023 when it partnered with Elon Musk’s X (formerly Twitter) to assist the social media platform in launching crypto and stock trading. However, the firm faced regulatory challenges earlier in the year in Australia when the Australian Securities and Investments Commission filed a lawsuit against eToro over “volatile” trading products in August.

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