eToro gets nod to operate crypto business in France
eToro has registered its cryptocurrency services with the dual regulatory structure in France, which includes the Autorité des Marchés Financiers (AMF) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR).
The new license allows eToro to offer regulated services under legislation governing operations of digital asset service providers (DASPs), namely France’s PACTE law, one of the first crypto legislative packages passed in Europe.
eToro (Europe) Limited has secured a digital asset service provider registration, which enables its European business to offer trading and custody services for cryptocurrencies on its platform. The registration also allows the broker to boost its operational plans across the European continent and provide regulatory protection for users with regards to AML/CFT and customer identification requirements.
Emmanuel Sackmann, eToro’s Regional Manager for France, said: “We are very proud to have received this registration from the Autorité des Marchés Financiers (AMF). France is an important market for us and we are delighted to be able to offer our French users direct access to cryptoassets as part of a diversified portfolio of investments. eToro’s goal is to get more people investing and we fully support all regulatory measures that protect retail investors without excluding those who could benefit most, or stifling innovation.”
France’s Pacte Law encompasses a very broad range of measures covering many aspects of all crypto-active players. The current laws require cryptocurrency exchanges as well as custodian providers to undergo a mandatory AMF registration and obtain a certification to be granted by the French watchdog. France’s primary regulator confirmed that it is already involved with other crypto-related operators such as exchange platforms, custodians, and asset managers.
Previously, France introduced its own guidelines governing the ICOs and similar token sales earlier in 2018 and then proposed legislative amendments to put cryptocurrency-related entities under the legislative purview of its financial watchdog.
Furthermore, the framework comes with hefty fines for those who fail to comply, but will not reimburse investors for their losses as it happens with compensation funds that cover traditional investments.
Earlier this month, eToro lifted the suspension and allowed trading again on Terra’s Luna. Similar to how they announced the suspension, Israeli social trading network advised traders to be cautious as there’s still doubts over its security and certainty. Unwilling to give room to criticism, eToro advocated personal research to be carried out before acting on the announcement.