Key Notes
- The license allows eToro to operate under a single regulatory framework across the EU while maintaining MiFID compliance and SOC 2 Type II certification.
- With over 38 million users globally and Europe as its largest market, eToro has expanded from its 2013 Bitcoin offering to over 100 crypto assets.
- The company's regulatory achievement comes amid industry concerns about MiCA's impact, while eToro simultaneously progresses toward a potential 2025 IPO valued at over $5 billion.
eToro, the commission-free social trading platform, has secured a major win in its crypto expansion move as its Europe-based subsidiary received a license from the Cyprus Securities and Exchange Commission (CySEC) under the newly established Markets in Crypto Assets Regulation (MiCA) framework.
This authorization ensures that eToro follows consistent regional rules, allowing it to operate under a single regulatory system while offering crypto services across all European Union countries.
eToro Pushes for Stronger Investor Protection
eToro is among the first trading firms to receive MiCA authorization, positioning it as a pioneer in regulated EU crypto trading. Despite the permit, eToro must notify each EU member state before offering services while maintaining compliance with MiFID. The company has also earned SOC 2 Type II Compliance Certification for handling crypto assets.
Grant Thornton gave it the highest rating for excellence in handling crypto assets. This achievement and MiCA approval proves eToro’s standing in the regulated European market.
With this approval, eToro can grow its services, giving European investors a safe way to invest in digital assets.
Avi Sela, eToro’s Chief Operating Officer, welcomed this development, stating that MiCA will drive crypto adoption across Europe by providing consistent market rules and ensuring consumers understand the risks.
In contrast to this sentiment, many within the crypto industry have raised concerns regarding the MiCA’s stringent regulation. As highlighted by Coinspeaker, Tether’s CEO has expressed worries about MiCA’s potential negative impact on stablecoins.
Meanwhile, many top exchanges are already complying with the new MiCA rules to stay in business in the region. Coinspeaker reported that Binance has recently adjusted its operations in Poland to comply with MiCA’s stringent requirements.
Expanding Access to Crypto for Millions
eToro currently serves over 38 million registered users in 75 countries, with Europe being its largest market. Coinspeaker reported that the exchange has received approval in countries like Germany and the UAE to expand its crypto services.
The company entered the crypto space in 2013 by introducing Bitcoin trading. Since then, it has expanded its offerings to over 100 crypto assets. The trading platform also offers services such as stocks, Exchange-Traded Funds (ETFs), indices, crypto staking , and thematic Smart Portfolios.
The Israeli-based company has been working on its plans to go public in 2025. Coinspeaker reported that the exchange submitted a confidential filing to the Securities and Exchange Commission (SEC) in January. This move could lead to an IPO valuing the company at over $5 billion.
nextDisclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
