eToro Group supports a regulated future
The purpose of regulation is to establish an environment of safety and security for consumers, which in turn feeds the confidence needed to propel an industry steadily forward. In the Fintech industry, eToro has been a part of that progress by supporting smart regulation and staying true to the core principles of oversight: stability and trust.
In 12 years, eToro has established 6 regulated entities as subsidiaries in 6 different jurisdictions — all built to partner well with regulations and ensure users that they are in the safest of hands. Now eToro is branching out further, bringing these same practices and supporting regulation where they are sorely needed: blockchain and crypto assets.
eToroX in Gibraltar
eToro’s newest subsidiary, eToroX, will lead its efforts in the blockchain and crypto asset industries under regulation established in Gibraltar in January 2018 meant to encourage growth in the distributed ledger technology (DLT) field and make that growth safer for everyone involved. Businesses often worry about red tape and the inefficiency of some regulations, but the 9 principles of Gibraltar’s framework offer the right balance for eToroX and DLT to flourish. According to the regulation, DLT businesses must:
- Conduct themselves with honesty and integrity
- Meet a high standard of customer care
- Show they have sufficient resources
- Take risk management seriously
- Strive to protect client assets
- Meet a high standard of corporate governance
- By proactive with high-class cybersecurity
- Act to reduce and fight financial crime
- Consider worst-case scenarios and how to protect clients
eToroX sees Gibraltar’s framework as flexible enough to allow for growth and innovation by focusing on the correct principles that keep our customers safe. The structure of these regulations is likely to benefit the market by:
- Favoring reputable DLT providers
- Providing consumers with the comfort of knowing that regulations are in place to protect their interests
- Supporting the underlying ideas of blockchain, especially those of transparency and security
- Increasing the reputation of the blockchain industry
- Raising security and therefore interest from more and more multinational companies in blockchain
- Driving innovation in a safe environment
Gibraltar has also proven to be stable ground for the local enforcement of smart European legislation like one law that requires DLT businesses to take an active role in fighting money laundering in the crypto sphere.
GFSC
The Gibraltar Financial Services Commission (GFSC) is the body largely responsible for the employment of these regulations that are making it possible for eToroX to pursue a more responsible future for blockchain operations. The commission has proven to be both innovative in its ideas and agile and its implementation of them.
Read more about the GFSC at their website: http://www.gfsc.gi/
