Gibraltar's financial regulator granted a blockchain technology license to eToroX, the blockchain subsidiary of eToro. The unit operates the social trading platform's wallet and will manage it
Gibraltar's financial regulator granted a blockchain technology license to eToroX, the blockchain subsidiary of eToro. The unit operates the social trading platform's wallet and will manage its exchange, executing eToro's strategy in cryptocurrency and blockchain technology.
eToro runs one of the larger retail investment platforms, with over 10 million registered users. The platform lets customers trade stocks, commodities, and cryptocurrencies. The platform expanded into crypto this year. In November, eToro released a wallet that let users transfer cryptocurrency holdings off the platform for the first time. eToroX now oversees that wallet and the exchange, which the company said in May it would launch before year's end.
The Gibraltar Financial Services Commission awarded the license under a regulatory framework with nine requirements for DLT companies. These principles aim to protect users while encouraging development of blockchain technology. License holders must have systems to detect, prevent, and disclose money laundering and terrorist financing. They also must maintain sufficient financial and operational resources to support their operations.
"In the future all assets will be tokenised and we are just taking the first steps on this journey," Yoni Assia, eToro's co-founder and chief executive, said. "Just as eToro has opened up traditional markets for investors, we want to do the same in a tokenised world and the creation of eToroX will help us to do this."
"We believe that a strong system of regulation will support the mass adoption of blockchain technology, including crypto assets," said Doron Rosenblum, managing director of eToroX. "We don't need to reinvent the wheel to regulate blockchain. Whilst blockchain brings some unique challenges to regulators, we can protect users and help support new ideas by applying the same fundamental principles as we have in other financial markets."
eToro's crypto selection has grown through 2018. The platform now trades 13 cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, Litecoin, XRP, EOS, Stellar Lumens, Cardano, Dash, IOTA, NEO, and Ethereum Classic. The company added Binance Coin in October, the same month it cut transaction fees on crypto assets to drive adoption.
Research from eToro and Imperial College published in July forecast that cryptocurrencies would become mainstream within a decade. Looking ahead, the company signaled additional announcements would come in 2019.
