eToro Expands Crypto Services in EU after Securing Registration in Cyprus

Breaking News: eToro receives regulatory approval from Cyprus Securities and Exchange Commission

eToro, the cryptocurrency-friendly brokerage firm, is set to expand its crypto services worldwide after obtaining a Crypto Asset Service Provider (CASP) registration from the Cyprus Securities and Exchange Commission (CySEC). The registration, which was officially announced on Sept. 21, will allow eToro to offer regulated crypto services to all European Union countries through a single entity called eToro Europe Digital Assets. The registration is expected to come into effect in December 2024, coinciding with the enforcement of the EU's Markets in Crypto-Assets Regulation (MiCA).

Europe plays a crucial role in eToro's expansion plans

eToro's deputy CEO, Hedva Ber, expressed excitement about the registration, stating that it demonstrates eToro's preparedness to embrace the new era of crypto once MiCA is enforced. Ber also emphasized the importance of Europe to eToro as the majority of its users are based in the region. Other major crypto firms, including Bybit exchange, have also obtained the CySEC registration in their efforts to expand their presence in the EU. However, Binance recently applied to deregister in Cyprus as it aims to focus on larger markets.

Further regulatory milestones for eToro

This recent regulatory approval in Cyprus comes after eToro achieved a similar milestone in Spain. In July 2023, the Bank of Spain approved eToro's registration as a service provider for the exchange of virtual currency for fiat currency and electronic wallet custody services. Previously, eToro also obtained a digital asset service provider registration from the French financial regulator, the Autorité des Marchés Financiers.

eToro's notable partnerships and challenges

eToro, known as a major social trading and multi-asset investment firm, made headlines earlier this year through its partnership with Elon Musk's X (formerly Twitter) in launching crypto and stock trading on the social media platform. However, the company has also faced challenges. In August, the Australian Securities and Investments Commission filed a lawsuit against eToro over its "volatile" trading products.

Stay informed: Crypto regulation and SEC Chair Gary Gensler

If you're interested in the latest developments in crypto regulation, don't miss our magazine article on whether SEC Chair Gary Gensler has the final say in the matter.