eToro To Launch Crypto Wallet eToroX, Licensed By GFSC

By Rishma Banerjee

EToro, a social trading and multi-asset brokerage company, recently announced the addition of their new cryptocurrency wallet, the eToroX which is as of now in a soft launch phase and is backed by distributed ledger technology. This new wallet has been licensed by the Gibraltar Finance Services Commission (GFSC). It has been designed to make the use of crypto usage easier and also to facilitate transactions of cryptocurrencies. Yoni Assoa, the CEO of eToro, which has over 10 million registered users, and lets customers invest in the assets they want from stocks and commodities to crypto assets who was approached for his comments, said:

“We are proud to say that we are among the first companies in the world to obtain a licence for cryptoassets and one of very few regulated companies in the crypto space. 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 do this.”

The Gibraltar Financial Services Commission requires any company that wants to deal with the blockchain technology in the country to be licensed and in order to actually acquire the license, a company has to demonstrate that it has the necessary monetary funds, the tech systems and full control of the compliance of the users. As the wallet has been granted a license by the GFSC, it will now have certain specific features in place in order to detect, prevent and disclose financial crime risks including money laundering. The eToroX, a subsidiary of eToro, mentioned that the move will benefit the company and all users making use of the wallet:

“We believe that a strong system of regulations will support the mass adoption of blockchain technology, including cryptoassets. We don’t need to reinvent the wheel to regulate blockchain. While 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.”