Gibraltar’s financial services watchdog has awarded eToroX, the cryptocurrency arm of social trading network eToro, its bespoke license for blockchain firms using distributed ledger technology. The move comes a few weeks after Huobi and Coinfloor received Gibraltar’s first DLT Licences since the British overseas territory instituted its crypto regulatory framework.
Yoni Assia, co-founder and CEO of eToro, said receiving a DLT Providers license is a huge milestone for his company and the crypto community as a whole.
“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,” he added.
Created a few months ago, eToroX is tasked with defining and executing eToro’s vision around blockchain, including its upcoming crypto exchange, and the development of cryptoassets. Last month, the company unveiled its own proprietary cryptocurrency wallet.
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The Gibraltar Financial Services Commission (GFSC) requires licensed firms to demonstrate they have adequate financial resources, IT systems, and controls to comply with anti-money laundering and terrorist financing rules.
As such, engaging in business with a company approved by the GFSC offers clients several guarantees regarding the safety of their funds, and the trustworthiness of the service with which they are working.
With this in mind, the regulatory body makes a point that these are not rigid rules as “a flexible, adaptive approach is required in the case of novel business activities, products, and business models.”
Attracting blockchain startups is seen as one way of bolstering Gibraltar’s thriving financial services industry after the self-governing territory, along with the UK, will leave the EU next year.