eToro Finally Launches Crypto Trading in New York After Three-Year Wait

TLDR

• eToro has launched crypto trading for New York clients, over three years after receiving its BitLicense in February 2023
• The platform is starting with around 20 tokens in New York, compared to 115+ offered in other markets
• eToro was the first firm granted a BitLicense after the FTX collapse, which increased regulatory scrutiny
• Staking is also planned for New York users, pending regulatory approval
• The firm skipped launching under the Biden administration, citing an unfriendly crypto environment

Trading platform eToro has launched crypto trading for its New York customers, more than three years after being granted a BitLicense by the New York State Department of Financial Services in February 2023.

The rollout starts with around 20 tokens. In comparison, eToro offers over 115 crypto assets in the 74 other countries and 47 other U.S. states where it operates.

Andrew McCormick, head of eToro U.S., confirmed the launch in an interview. He said the delay was longer than expected, but called the milestone an honor given how few firms have received and activated the license.

Since the BitLicense was introduced in 2015, fewer than 40 firms have been approved. Not all of them go on to actually offer crypto services in the state.

McCormick said eToro was the first firm to receive a BitLicense after the collapse of FTX in late 2022. That event raised the bar for approval.

Why the Launch Was Delayed

eToro was not in a rush to launch during the Biden administration, according to McCormick. He described that period as not a “friendly time to invest and grow in the world of crypto in the United States.”

The company was also focused on its initial public offering last year, which McCormick said took priority.

eToro still does not offer crypto in Hawaii and Nevada, in addition to New York’s previous gap.

Staking and Federal Regulation

eToro plans to add staking for New York users. McCormick said this requires a new business plan update with regulators and is “in the pipeline.”

On federal regulation, McCormick expressed support for the U.S. House’s Clarity Act, which would set broad crypto market structure rules at the federal level and define roles for the SEC and CFTC.

The Clarity Act has stalled in Congress as lawmakers argue over the details.

eToro operates across stocks, ETFs, indices, currencies, commodities, and crypto. The New York launch adds a major U.S. market to its crypto footprint, with plans to expand the token list over time.

McCormick noted that eToro has a positive relationship with the New York Department of Financial Services, describing the regulator as thorough but supportive of its supervised firms.

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