eToro Opens Up French Users to Crypto Assets with DASP Registration

The European subsidiary of eToro, an Israeli multinational social trading and multi-asset investment company, says its users in France can now invest directly in crypto assets.

The trading network said its French users can trade the digital class in addition to an existing range of investment products.

eToro on Friday said its registration as a Digital Asset Service Provider (DASP) with the Autorité des Marchés Financiers (AMF), France’s financial industry watchdog, makes this possible.

The development comes two months after the total number of cryptocurrency assets on eToro peaked at 62 after the trading network added four new tokens to its platform.

The company explained that the registration demonstrates its commitment to collaborating with regulatory authorities to comply with rules and regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Read this Term.

It added that the registration shows that it is committed to safeguarding retail investors.

Speaking on the move, Emmanuel Sackmann, eToro's Regional Manager for France, said the network’s goal is to get more people to invest.

Sackmann added that the multinational firm supports all regulatory actions that protect retail investors without excluding those who could benefit most or stifle innovation.

“We are very proud to have received this registration from the Autorité des Marchés Financiers (AMF). France is an important market for us, and we are delighted to be able to offer our French users direct access to crypto assets as part of a diversified portfolio of investments,” the Regional Manager said.

Private Funding?

Meanwhile, Finance Magnates reported last month that the Israeli company is on track to raising between $800 million and $1 billion in a private funding round Funding Round Startups look to raise capital can participate in a funding round. These refers to the various rounds of funding that occur upon proof of concept, customer base growth, and the probability of success. While they are various types of funding rounds, the most commonly seen in startups include the following funding rounds: Seed, Series A Fundraising, Series B Fundraising, and Series C Fundraising. In order for a funding round to take place, a valuation must be performed by analysts for the business in question. Common factors that analysts use for valuations include market size, risk, management, and historical transparency. Types of Funding RoundsThe seed funding round officially kicks off a startup’s equity fundraising process. Used by startups to finance the beginning stages of its business, some proceeds of seed funding may go towards product development and market research.Common investors include angel investors, friends, family, and venture capital firms.Companies that emerge out of the seed funding round that has gone on to prove its ability to build a consumer base while generating a regularly occurring revenue can participate in Series A Fundraising.Businesses that wish to opt-in to a Series A funding round must also possess a strong business strategy to illustrate how it will continue to manifest into a successful business. Series B Fundraising are available for companies that are seeking to depart the development stage that has valuations between $30 million to $60 million.Companies that go on to make it to Series C funding rounds are considerably successful where the aim is to scale a company as efficiently and quickly as possible. Typical investors include investment banks, private equity firms, and hedge funds. For many investors, monitoring how a startup goes through funding rounds is a tactical strategy for securing high-probability investments. Startups look to raise capital can participate in a funding round. These refers to the various rounds of funding that occur upon proof of concept, customer base growth, and the probability of success. While they are various types of funding rounds, the most commonly seen in startups include the following funding rounds: Seed, Series A Fundraising, Series B Fundraising, and Series C Fundraising. In order for a funding round to take place, a valuation must be performed by analysts for the business in question. Common factors that analysts use for valuations include market size, risk, management, and historical transparency. Types of Funding RoundsThe seed funding round officially kicks off a startup’s equity fundraising process. Used by startups to finance the beginning stages of its business, some proceeds of seed funding may go towards product development and market research.Common investors include angel investors, friends, family, and venture capital firms.Companies that emerge out of the seed funding round that has gone on to prove its ability to build a consumer base while generating a regularly occurring revenue can participate in Series A Fundraising.Businesses that wish to opt-in to a Series A funding round must also possess a strong business strategy to illustrate how it will continue to manifest into a successful business. Series B Fundraising are available for companies that are seeking to depart the development stage that has valuations between $30 million to $60 million.Companies that go on to make it to Series C funding rounds are considerably successful where the aim is to scale a company as efficiently and quickly as possible. Typical investors include investment banks, private equity firms, and hedge funds. For many investors, monitoring how a startup goes through funding rounds is a tactical strategy for securing high-probability investments. Read this Term.

This is even as the network continues its efforts towards becoming a public company.

The funding round will be one of the largest private equity funding rounds for any Israeli tech company if completed successfully.

The funding is predicted to raise the valuation to between $5 billion and $6 billion.

However, eToro declined to confirm the funding or the new valuation.

“We don't comment on market rumours,” an eToro spokesperson told Finance Magnates.