Retail FX broker, eToro has announced that its digital subsidiary, eToroX has secured DLT license from Gibraltar’s financial watchdog, Gibraltar Financial Services Commission (GFSC). The license ensures companies safety of funds and trustworthiness of the service which they are providing.
eToroX was founded a few months ago and is responsible for defining and executing eToro’s vision around blockchain including its planned launch of crypto exchange and development of crypto assets. The company had also unveiled its proprietary cryptocurrency wallet last month.
Commenting on the development, Yoni Assia, Co-founder and CEO of eToro, said:
“We believe that crypto assets and the blockchain technology that underpins them will revolutionize global finance, bringing about the greatest transfer of wealth ever onto the blockchain. In the future, all assets will be tokenized, and we are just taking the first steps on this journey. Just as eToro has opened up traditional markets for investors, we want to do the same in a tokenized world, and the creation of eToroX will help us do this.”
“We are proud to say that we are amongst the first companies in the world to obtain a licence for crypto assets and one of very few regulated companies in the crypto space. The launch of our wallet and the forthcoming exchange are big steps for eToro in expanding our crypto offering. With the launch of our wallet, we can for the first time provide clients with a means of transferring crypto assets away from the eToro platform. With the eToroX wallet, customers are able to send and receive crypto via the blockchain.”
The move comes few weeks after Huobi and Coinfloor secured Gibraltar’s first DLT license. GSFC requires firms to comply with all the anti-money laundering and terrorist financing rules, and firms should have adequate financial resources, IT systems. GSFC offers companies several guarantees regarding the fund’s safety and trustworthiness of services.
Doron Rosenblum, Managing Director of eToroX also added:
“We believe that a strong system of regulation will support the mass adoption of blockchain technology, including crypto assets. 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.”
“The GFSC has been forward-thinking in developing this framework, and we hope it serves as a blueprint for other markets. The licensing process has been through, but by working closely with the GFSC, we are pleased to say that we now have a licence and look forward to supporting the growth of tokenized assets.”
