eToro: license for crypto services in New York

eToro announced that it has obtained a BitLicense, to provide crypto services in New York, along with a money transfer license.

eToro with the BitLicense is officially a crypto service provider in New York

Social trading and multi-asset investment platform eToro has announced that it has obtained a license in New York State, BitLicense, to provide crypto services, along with a money transfer 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

Basically, the New York State Department of Financial Services (NYDFS) approved the application for a money and virtual currency transfer license (BitLicense) submitted by eToro NY LLC.

With this approval, eToro joins the already 32 licensed BitLicense entities established in 2015.

Henceforth, users in New York State will be able to use eToro’s services by accessing its virtual wallet, its integrated social investing tools, and will be able to trade stocks, cryptocurrencies, and options.

eToro and crypto investments by Americans

Speaking of the newly approved BitLicense for eToro, Yoni Assia, co-founder and CEO of eToro, commented:

“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. eToro combines the community led approach of social media with intuitive investing tools and prides itself on the simplicity of its user experience. On eToro users can learn, practice, invest and share ideas.”

The platform also reported research data showing that 45% of US retail investors say they currently invest or plan to invest in cryptocurrencies.

Thus, despite the “long crypto winter,” it appears that US investors remain resilient on the topic, looking for opportunities as well as hedges in case crypto prices fall further.

The eToro company already has a presence in the country, with eToro USA Securities Inc. being a broker-dealer registered with the Securities and Exchange Commission and eToro USA LLC registered with the Financial Crimes Enforcement Network (FinCEN) as a Money Services Business.

Analyst Josh Gilbert’s optimistic analysis on Bitcoin

Earlier this year, eToro analyst Josh Gilbert, had released his optimistic analysis of Bitcoin and crypto for 2023. 

Indeed, Gilbert looks ahead to 2023 with a more bullish trend, after Bitcoin and cryptocurrencies suffered in 2022 due to factors external to the assets. Among many, Gilbert cites rising inflation in the US and rising interest rates, but also the collapse of the Terra/Luna ecosystem and then the failure of the FTX crypto-exchange.

Hence, while in 2022 Bitcoin saw a 65% loss, in early 2023 its price was pushed above $17,000, matching positive employment data in the US that suggests there may be no recession.

Gilbert predicts that if inflation continues to fall in 2023, there would be more chances for investors to feel motivated to reverse the crypto trend to the upside.

Image credit given by PiggyBank