© Reuters. eToro Obtains Permits to Offer Cryptocurrency Services in New York
BeInCrypto – Israeli multinational social trading and multi-asset investment company eToro has been cleared to start cryptocurrency-related services in New York. The New York State Department of Financial Services (NYDFS) has given the green light to the request of eToro NY LLC, a subsidiary of the company, to operate as a money transmitter. He was also approved for the virtual currency license, known as BitLicense.
Once eToro NY LLC goes live, users in New York State will have access to the firm’s virtual portfolio and integrated social trading tools. They will then be able to trade stocks, cryptocurrencies, and options.
Yoni Asiaco-founder and CEO of eToro, called the news a milestone.
“Getting our BitLicense and Money Transmitter license in New York is a key milestone in the continued expansion of our business in the US and a testament to our team’s commitment to partnering with regulators and government entities. eToro combines the community approach of social media with intuitive trading tools and prides itself on the simplicity of its user experience. On eToro, users can learn, practice, invest and share ideas.”
for his part Lule Demmissie, CEO of eToro US, He showed his excitement at the confirmation of the release.
“The right time to start investing is always now and we are incredibly excited to bring eToro’s unique proposition to New York State residents. eToro believes that the secular trend that has fueled the growth of the individual trader and investor will continue. Yes, engagement has dropped from the crazy highs of 2021, but we’re still seeing growing participation. The overarching story continues to be one of individual empowerment with ordinary investors accessing a wide range of instruments including cryptocurrencies, stocks, and options.”
The eToro process and other companies
The company becomes part of the list of firms that can operate in a state famous for the complexities that the approval process requires. According to those who went through it, it consists of long waiting times, strict compliance rules and high costs. Other actors who already have their green check are Coin Cafe y PayPal, (in 2022).
Coin Cafe had to wait 7 years from the first step to be able to operate. Its authorization came during this 2023. The NYDFS currently regulates a total of 33 entities under BitLicense, a licensing system that was created in 2015.
To begin offering services in the state, the company has yet to set a date for the New York platform to be operational and accessible to users. Demmissie appreciated the process undertaken by eToro.
“eToro remains a long-term supporter of cryptocurrency and diversified investing in general. Earning the ‘Innovator’ badge means working closely with regulators, both in the US and globally, to shape the future of the cryptocurrency industry and promote access for the Main Street investor. .”
Focused on providing copy trading and financial services, eToro has approximately 28.5 million users and operates in more than 140 countries. Although it has had a presence in the United States since 2009, the platform was not authorized to provide its services in New York. Its headquarters are located in the Central District of Israel and it has registered offices in Cyprus, the United Kingdom, the United States and Australia.
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