eToro crypto business gets CySEC license
eToro has received approval from CySEC to operate as a crypto asset services provider, providing a regulatory stamp for the company’s digital assets and cryptocurrencies business in Cyprus and Europe.
eToro Cyprus has been granted Class 3 registration which allows the Israel-based investing platform to offer spot, custodian, staking and card services.
The Cypriot licensing requires the firm to adhere to strict financial standards under the MiFID II framework, including the segregation and protection of client funds, full transparency of its business operations and capital adequacy controls.
Operating under the CySEC umbrella allows eToro to leverage its new regulatory profile to expand its services into the European Markets. Launching a service under the CySEC license will also provide users with a regulated platform to work with digital asset-based investments.
eToro is also registered as a virtual asset service provider (VASP) by the Bank of Spain, allowing the broker to offer custody and crypto exchange services in the country. In June 2022, eToro secured VASP approval from France’s financial market regulator, Autorité Des Marchés Financiers, giving it the necessary registration to offer its services in the country. A month later, the broker secured a similar license to operate crypto business in Italy.
Dr Hedva Ber, Deputy CEO at eToro, said: “This registration signals that we are 100% ready to embrace a new era for crypto once MiCA comes into effect next year. As a global company regulated in various markets around the world, we are very much looking forward to the increased certainty and security that MiCA will offer to both consumers and reputable businesses in this space.
“Europe is a hugely important region for eToro, it’s where the majority of our users are based and we want to continue offering European investors direct access to a wide range of crypto assets as part of a diversified portfolio. This new CySEC registration will make it much easier for us to achieve this in a post-MiCA Europe, allowing us to create a more streamlined and efficient offering for European investors who want to trade with crypto assets.”
The CySEC has been trying to increase oversight of cryptocurrencies and related assets by integrating EU anti-money-laundering rules into the Cypriot laws.
A policy statement issued in 2021 sets out detailed requirements for crypto firms seeking registration in the regulator’s CASP register. This register is publicly accessible and include information such as the crypto firm’s name, the legal form, its address and services.
