eToro, an Israel-based social trading network, has been granted a virtual currency license, also known as the BitLicense, by the New York State Department of Financial Services. In addition, the state regulator granted a money transmitter license to eToro, the trading network announced on Tuesday, adding that it secured the license through eToro NY LLC, its subsidiary in the United States.
eToro in a statement on its website explained that the licenses could offer stocks, crypto and options trading features to New Yorkers. The firm added that it intends to extend its virtual portfolio and integrated social investing tools to residents in New York once eToro NY LLC becomes operational.
“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, said in the statement.
The new development is the latest in a series of growth moves by eToro. Earlier this month, the social trading company opened up all investment assets to users in Brazil, exempting only forex and contracts for difference. eToro cited the need to meet regulatory requirements for the exemptions.
Furthermore, the firm in late January introduced 'InvestorAI-US,' 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. However, eToro said the new portfolio is not yet available to users in the United States.
eToro Sets Eyes on the US
Meanwhile, eToro in its latest Retail Investor Beat report found that about 45% of retail investors in the United States invest or plan to invest in cryptocurrencies. The report, which is based on a survey of 10,000 retail investors drawn from 13 countries and three continents, also found that the majority of retail investors (69%) feel confident about their investment portfolio despite the prolonged bear market experienced in 2022.
In addition, the report found that a good number of young retail investors appear to be more risk tolerant as 76% of them between the ages of 18-34 report 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," Lule Demmissie, the CEO of eToro US, noted. She also added that eToro believes the secular trend which has powered the growth of the individual trader and investor will continue. Furthermore, Demmissie mentioned that while engagement has fallen from "the crazy highs of 2021," participation in trading is on the rise.
