The business announced Tuesday that social trading and investment platform eToro has obtained a licence to provide cryptocurrency services in the state of New York.
In addition to a money transfer licence, eToro announced that it has acquired a BitLicense to offer cryptocurrency services in New York.
With the BitLicense, eToro is a recognised cryptocurrency service provider in New York.
The social trading and multi-asset investing platform eToro has disclosed that it has acquired a money transfer licence and a BitLicense from the state of New York to offer cryptocurrency services.
In essence, eToro NY LLC’s application for a money and virtual currency transfer licence (BitLicense) was accepted by the New York State Department of Financial Services (NYDFS).
With this clearance, eToro joins the 32 BitLicense organisations that were previously licenced when it was created in 2015.
Users in New York State will now have access to eToro’s services, including its integrated social investing tools, virtual wallet, and the ability to trade equities, cryptocurrencies, and options.
US investments in eToro and cryptocurrencies
Co-founder and CEO of eToro Yoni Assia remarked on the recently authorised BitLicense for eToro:
“Obtaining our BitLicense and Money Transmitter License in New York is an important step in the development of our US business and a reflection of our team’s dedication to cooperating with state regulators and regulatory bodies. eToro prides itself on the ease of use of its platform and mixes the community-led social media strategy with straightforward investing tools. Users may practise, learn, invest, and exchange ideas on eToro.
The company also released research findings indicating that 45% of US retail investors claim they are presently investing in cryptocurrencies or plan to do so in the future.
Hence, it seems that American investors are still resolute about the subject despite the “long crypto winter,” hunting for chances as well as hedges in case crypto values decline much more.
The eToro firm already has a presence in the nation thanks to the registration of eToro USA Securities Inc. as a broker-dealer with the Securities and Exchange Commission and eToro USA LLC as a money services business with the Financial Crimes Enforcement Network (FinCEN).
Analyst Josh Gilbert’s optimistic analysis on Bitcoin
Josh Gilbert, an analyst at eToro, published his upbeat forecast for Bitcoin and other cryptocurrencies for 2023 earlier this year.
Gilbert does indeed see a more positive 2023 following the 2022 decline in Bitcoin and cryptocurrencies due to outside forces. Gilbert lists a number of factors, including the US’s rising interest rates and inflation, as well as the demise of the Terra/Luna ecosystem and the subsequent failure of the FTX cryptocurrency market.
Hence, while Bitcoin suffered a 65% loss in 2022, its price was pushed beyond $17,000 in early 2023, mirroring encouraging job figures in the US that may indicate there won’t be a recession.
According to Gilbert, there will be additional opportunities for investors to feel encouraged to turn around the downward trend in cryptocurrency prices if inflation continues to decline in 2023.