eToro Secures License to Provide Crypto Services in New York

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Israeli multinational social trading platform eToro has secured regulatory approval to provide crypto-related services in New York as it continues to expand its presence in the United States.

According to the firm’s announcement, it has secured a virtual currency license also known as BitLicense from the New York State Department of Financial Services (NYDFS) through its US subsidiary eToro NY LLC.  

In addition to BitLicense, eToro also secured a Money Transmitter License. With the two licenses, the Israeli-based firm can provide services like stocks, crypto, and options trading to residents of the state as soon as it becomes operational. The users will also have access to its virtual portfolio and integrated social investing tools.

After getting the nod from the state regulator, eToro became the 33rd entity to secure BitLicense since it was established in 2015. Recall that Adrienne A. Harris, the head of NYDFS, has called Congress to consider the state’s model when designing regulations for the nascent digital asset industry.

However, the state regulator has come under criticism from industry players for its high compliance cost as well as restrictive measures. In April 2022, the regulator imposed a compulsory assessment fee for holders of BitLicense to mark their compliance with the regulations.

eToro Continues its Expansion in the US Market

According to co-founder and CEO Yoni Assia securing both licenses from the state regulator is a testament to its commitment to partnering with regulators and also evidence of its expansion in the US market. 

Recall that last year the brokerage firm, in a bid to expand its offering and register its presence throughout the United States, acquired financial technology startup, Gatsby. The acquisition which was worth about $50 million both in cash and a common stock deal is a key step in the diversification of eToro’s offering to US users.

Aside from eToro, the US subsidiary of the crypto exchange giant Binance, Binance US, also received its Money Transmitter License from the Nevada Department of Business and Industry, Financial Institutions Division. Notably, the approval is part of the exchange’s plan to offer fully regulated services to all 50 states and territories in America.

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