NYDFS Approves Virtual Currency License For eToro's New York Division

eToro scooped a virtual currency license allowing the investment platform to offer digital asset facilities in New York. The trading service provider was awarded regulatory approval by the New York State Department of Financial Services (NYDFS), CoinDesk reported on Tuesday. 

The regulator approved two licenses for eToro’s New York division, eToro NY LLC. Per reports, the investment company bagged two separate licenses which will allow it to offer its services to New York’s crypto ecosystem. 

eToro received a virtual currency license also known as a BitLicense. Some 33 other companies also boast New York’s BitLicense, a licensing regime started back in 2015 to regulate digital asset service providers. The other license issued to eToro is a money transmitter license. 

The pair of regulatory nods gives eToro official permission to offer crypto, stock, and options products. eToro’s visual portfolio and integrated social investing tools will also be available to the company’s New York clients. 

Tuesday’s regulatory victory crowns the company’s U.S. expansion. eToro NY LLC now joins the firm’s USA Securities Inc and eToro USA LLC as regulated entities on American soil. It’s not yet clear when eToro will launch its facilities in New York.

NYDFS Clampsdown On Binance-Branded Stablecoin

While the NYDFS approved two licenses for eToro, the New York regulator cracked down on another digital asset entity. Crypto trust company Paxos was ordered to cease minting the Binance USD (BUSD) stablecoin. 

Paxos was given the directive shortly around the same time that the U.S. Securities and Exchange Commission issued a Wells notice to the company. The SEC unveiled a lawsuit against Paxos for allegedly selling unregistered securities tokens. 

In response, Paxos denied the allegations from the NYDFS and the SEC, promising to litigate if necessary. As recently reported, Paxos CEO Charles Cascarilla told employees that the crypto trust co was in “constructive discussions” with the SEC. 

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