eToro has received EU approval to operate as a cryptoasset service provider, expanding its services to all EU countries. Galaxy Digital and Ark Invest also plan to expand into Europe, targeting the region’s growing cryptocurrency and ETF markets. Binance has expressed concerns about the possible exclusion of stablecoins in Europe due to the upcoming MiCA regulation.
Stock and cryptocurrency trading platform eToro has received regulatory green light from the European Union (EU) as more cryptocurrency companies expand into Europe.
Amid the US crackdown, Europe has become a popular destination for crypto companies. Many companies, including eToro, Galaxy Digital, and Ark Invest, have announced their expansion into Europe.
eToro Last to Offer Cryptocurrency Trading Services
According to Finextra, eToro has registered as a Crypto Asset Service Provider (CASP) with the Cyprus Securities and Exchange Commission (CySEC). The European legislation on the cryptoasset market (MiCA) received unanimous approval from all countries in the bloc in May 2023.
The legislation will come into force from July 2024 and eToro will be able to offer its services to all EU countries through a single entity. Dr. Hedva Ber, Deputy CEO of eToro, had this to say:
“Europe is a region of enormous importance for eToro, it is where the majority of our users are located and we want to continue offering European investors direct access to a wide range of crypto assets as part of a diversified portfolio.”
Digital Galaxy Expands
eToro is not the only company targeting the European market. According to the Financial Times, Galaxy Digital is expanding into the European market as it seeks a friendlier market after the US crackdown. The company first hinted at plans to move its operations out of the US market in May 2023.
Galaxy Digital offers a wide range of services around the crypto ecosystem, such as trading, asset management, investment banking and mining services. The company, led by Mike Novogratz, has hired Leon Marshall as CEO of its European division. Previously, he worked as global head of sales for Genesis. Marshall wrote on LinkedIn the following:
“Given increasing regulatory clarity, our expanding strategic partnerships and the continued adoption of digital assets by European financial institutions, I have never been more optimistic about the prospects for our industry in the region.”
Ark Invest Targets Europe ETF Market
Along with Galaxy Digital, Cathie Wood’s Ark Invest is also trying to penetrate the European market. To do so, it acquired European-based exchange-traded fund (ETF) issuer Rize ETF Limited.
According to Bloomberg, Ark Invest wants to capitalize on the growing ETF market in Europe. The screenshot below from Bloomberg Intelligence shows that Europe’s ETF market is worth more than $1.5 trillion.
Cathie Wood, founder of Ark Invest, had this to say:
“We believe the European ETF market presents a growth opportunity as new and younger investors continue to gain access to ETFs through the growth of platforms, and as active ETFs increase their market share by meeting demand. of innovative investment exhibitions.”
While major companies are looking forward to MiCA regulation, Binance is concerned about the exclusion of stablecoins from the European market. The European Banking Authority (EBA) has asked stablecoin issuers to voluntarily follow certain guidelines before MiCA rules are enacted.
In an EBA online public hearing, Marina Parthuisot, legal director of Binance France, said: “We are targeting the elimination of all stablecoins in Europe on June 30, given that no project has yet been approved.”
By Leonardo Pérez