eToro becomes the latest company to receive New York’s BitLicense
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According to recent reports, the popular social trading and investing platform, eToro, managed to secure a license to offer digital asset services in the state of New York. New York has been one of the strictest states in the country when it comes to offering crypto services, and firms have to secure the so-called BitLicense in order to legally offer crypto trading, investing, and other related services.
Now, according to eToro, the platform will be able to join the ranks of those who managed to obtain it from the New York State Department of Financial Services (NYDFS). Apart from the BitLicense itself, eToro NY LLC subsidiary also managed to secure a money transmitter license.
🥳 It’s official! We have received our BitLicense in the state of New York.
Once operational, users in New York will have access to our award winning virtual portfolio, integrated social investing tools and be able to trade stocks, crypto and options. https://t.co/e42aFfjEgX
— eToro US (@eToroUS) February 21, 2023
This pair will now allow the company to offer services to New York citizens, as well as grant them access to eToro’s “virtual portfolio, integrated social investing tools and be able to trade stocks, crypto and options.” The platform has yet to become fully operational and actually go live, but with the license secured, it is only a matter of time.
Why is securing BitLicense an major achievement?
More importantly, with eToro joining the list, there are now only 33 regulated entities that hold BitLicense. The license itself was created in 2015, and NYDFS has been very picky about which company will receive it. Its restrictive measures have led to a lot of heavy criticism from the crypto industry players more than once.
The local regulator demands the highest levels of compliance, and even then, waiting times for receiving the license have known to be quite long. One example of this comes from a cryptocurrency company called Coin Cafe, which originally applied to receive the BitLicense in August 2015. It only received it in January 2023.
Our BitLicense application is in. 3.2 lbs and we're here to stay, thanks for the support everyone! pic.twitter.com/70t3b0uGX0
— coincafe (@coincafeinc) August 17, 2015
Before that, the last firm to receive BitLicense was PayPal, which secured it in June 2022. With all of this being the case, it is not surprising that many view getting the license to operate in New York as a “keymilestone” when it comes to a firm’s expansion in the US.
Of course, eToro has a presence in the country already, and quite strong one, too. eToro USA Securities Inc acts as a broker-dealer registered with the US SEC, while another aspect of the company, eToro USA LLC, is registered with FinCEN (Financial Crimes Enforement Network), working as a Money Services Business.
As mentioned, securing the BitLicense in New York means that eToro has managed to reach a major achievement. However, it has not yet announced when its platform will go live and start offering services to New York traders and investors.
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