eToro Gets Virtual Currency and Money Transmitter Licenses

eToro Gets Virtual Currency and Money Transmitter Licenses

On Tuesday, eToro, a social trading network based in Israel, received a virtual currency license, also known as the BitLicense, from the New York State Department of Financial Services. The state regulator also granted eToro a money transmitter license. The company obtained the licenses through its subsidiary, eToro NY LLC, in the United States.

In a statement on its website, eToro explained that the licenses would enable the platform to offer New York residents features such as stocks, cryptocurrency, and options trading. Once eToro NY LLC becomes operational, the company intends to extend its virtual portfolio and integrated social investing tools to residents of New York.

“Securing our BitLicense and Money Transmitter License in New York is a key milestone in the continued expansion of our US business and a testament to the commitment of our team in partnering with regulators and state entities,” Yoni Assia, eToro’s Co-Founder and Chief Executive Officer explained.

This is the latest growth move by eToro, following the opening up of all investment assets to users in Brazil earlier this month, with the exception of forex and contracts for difference, in order to meet regulatory requirements for the exemptions.

USA On Target

In addition, eToro introduced ‘InvestorAI-US’ in late January, an artificial intelligence-powered portfolio that targets high-growth firms operating in the United States. The portfolio was launched in partnership with UK startup Bridgeweave, but it is not yet available to users in the United States, according to eToro.

According to eToro’s latest Retail Investor Beat report, nearly 45% of retail investors in the United States are investing or planning to invest in cryptocurrencies. The report is based on a survey of 10,000 retail investors from 13 countries and three continents. Despite the prolonged bear market experience in 2022, the majority of retail investors (69%) feel confident about their investment portfolio. The report also found that a significant number of young retail investors (76% of those aged 18-34) appear to be more risk-tolerant, with many of them feeling positive or indifferent about the 2022 downtrend.

“The right time to start investing is always now, and we are incredibly excited to bring eToro’s unique proposition to the residents of New York State. eToro believes the secular trend which has powered the growth of the individual trader and investor will continue. While engagement has fallen from “the crazy highs of 2021,” participation in trading is on the rise,” Lule Demmissie, the CEO of eToro US, noted.