eToro has acquired a New York BitLicense and money transmitter license, reopened cryptocurrency trading for New Yorkers and expanded its US coverage to 48 states following the 2024 SEC settlement.
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- eToro has obtained a New York BitLicense and a money transmitter license, opening its cryptocurrency platform to New York residents.
- The approvals mean eToro now offers cryptocurrency trading in 48 US states, following a $1.5 million settlement with the SEC in 2024.
- The company calls New York “the heart of the financial markets” and sees this move as a strategic milestone in its US expansion.
Online brokerage and social trading platform eToro has obtained a BitLicense from New York and a parallel money transfer license, paving the way for state residents to trade cryptocurrencies on its platform for the first time. Twin approvals from New York State Department of Financial Services (NYDFS) means that eToro’s cryptocurrency offerings now reach 48 US states, according to a report by Crowdfund Insider cited by ChainCatcher.
Announcing the launch, Andrew McCormick, President eToro“New York is the heart of the financial markets and a hub of innovation,” InNew York’s US division said, calling the expansion “a strategic milestone and a reflection of our commitment to responsibly advancing the next generation of financial market access.” NYDFS’s BitLicense system, which was introduced in 2015, remains one of the most stringent state-level cryptocurrency frameworks in the US, with only a limited number of exchanges and custodians approved over the past decade, as repeatedly highlighted by outlets like Bloomberg and the Financial Times.finance.
The green light in New York comes nearly two years after eToro resolved an enforcement action with… US Securities and Exchange Commission. In 2024, the company agreed to pay a $1.5 million civil fine to settle accusations that it was acting as an unregistered broker and clearing agency, and subsequently removed most of its cryptocurrency assets from its US platform while it overhauled its compliance controls. This reduction reflects a broader regulatory crackdown on offshore-style token listings, with major venues trimming their listings in response to pressure from the SEC and CFTC, as detailed in previous reports from Bloomberg and The Wall Street Journal on post-2022 implementation trends.
Since then, eToro has adopted a more conservative US stance, focusing on a narrower range of assets and building its own compliance and monitoring system to meet NYDFS standards. Through insurance BitLicenseThe company joins a small club of global exchanges able to serve retail clients in New York, while maintaining a regulatory moat that competitors cannot easily cross without state approval. For US users, the expansion means that the familiar social trading interface will now exist alongside existing licensed firms in the country’s more regulated cryptocurrency market, while for the industry, it provides a model for how post-enforcement platforms can return to New York — provided they accept stricter oversight and a slimmer token pool.
