eToro will restrict its support for non-leveraged CFD crypto trading in France and Australia. The broker asked its clients to close the non-leveraged long positions with such instruments before the deadline, which is 19 February for Australia and 21 February for France.
eToro Reevaluating Its Crypto Offering
“From that date, any remaining open long non-leveraged CFD crypto asset positions will be closed at market value,” the Israeli broker wrote in a notice targeted to the traders in the two countries.
However, the brokerage will continue to offer physical non-leveraged crypto trading in both countries. It even instructed traders who want to keep their positions open on how to close the crypto CFDs positions and open a similar position with real assets.
As a benefit of holding positions against real crypto assets, eToro highlighted that traders “will no longer be charged overnight fees. This is because overnight fees are only charged on CFD positions.”
Meanwhile, eToro only provide DASH and ZCASH as CFDs in France, so it will continue to offer crypto CFDs with these two digital assets.
“Since these crypto assets are only available on the eToro platform in France as CFDs, your non-leveraged long CFD DASH and ZCASH positions are NOT included in the positions that can be closed and re-opened as real crypto. Therefore, such positions will not be closed but remain open and unaffected,” eToro noted.
A Continuing Process
eToro has been actively restructuring its cryptocurrency offerings globally. Earlier, its German entity announced its decision to terminate offering crypto custody services for Germany-based users at the end of January 2024.
Instead, it will migrate German crypto custody customers to Tangany, a Munich-based BaFin-licensed crypto custodian.
“We are partnering with Tangany to provide crypto custody for our German clients holding real crypto. Beginning January 21, 2024, all of your crypto assets will be transferred from the custody of eToro Germany to Tangany,” eToro noted in its notice.
eToro attempted to go public earlier by merging with a blank-check company, but those plans did not materialize. Meanwhile, the company continues to strengthen its regulatory position with multiple licenses in Europe and the Middle East.
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