eToro has secured a significant regulatory milestone in Europe according to an announcement. The Cyprus Securities and Exchange Commission (CySEC) has granted eToro a Crypto Asset Service Provider (CASP) registration.
Embracing Europe’s Crypto Potential
This regulatory approval positions eToro to offer regulated crypto services across all European Union countries under a single entity: eToro Europe Digital Assets. However, this registration will take full effect in December 2024. This is once the European Union’s Markets in Crypto-Assets Regulation (MiCA) is enforced.
Hedva Ber, eToro’s Deputy CEO, emphasizes the company’s readiness for the impending changes. He stated that eToro is “100% ready to embrace a new era for crypto once MiCA comes into effect next year.” Further, he underscores the significance of Europe for company, with a substantial user base located within the region.
eToro joins the ranks of major crypto firms like Bybit exchange in expanding their presence in the EU through CySEC registration. In contrast, Binance took steps to deregister in Cyprus in June, redirecting its focus towards “larger markets.”
Steady Progress Across Europe
This recent approval in Cyprus follows a similar regulatory achievement in Spain. In July 2023, the Bank of Spain approved the company’s registration as a service provider for the exchange of virtual currency to fiat currency and electronic wallet custody services. Additionally, eToro previously secured a digital asset service provider registration from the French financial regulator, the Autorité des Marchés Financiers.
Renowned as a major social trading and multi-asset investment firm, eToro made waves in April 2023 by partnering with Elon Musk’s X (formerly Twitter). This partnership aims to facilitate the launch of cryptocurrency and stock trading on the social media platform.
Navigating Regulatory Challenges
Despite its global expansion efforts, eToro encountered regulatory challenges in Australia earlier this year. In August, the Australian Securities and Investments Commission took legal action against the company concerning “volatile” trading products.