French customers will now be able to invest directly in cryptocurrencies, the company said in a statement.
Trading platform eToro announced on Friday that it had obtained registration as a digital asset provider (PSAN) with the AMF, joining the 37 other PSANs, including cryptocurrency giant Binance.
This registration, which was requested a little over a year ago, allows eToro to operate in France for custody services for digital assets and the purchase and sale of digital assets, we can read on the AMF website.
“Clients in France will now be able to invest in more than 70 crypto-assets, by buying the underlying asset or buying as a CFD (Contract For Difference),” the company said in a press release.
French customers will be able to invest directly in cryptocurrencies thanks to this registration. Until now, French clients who wanted to invest in these assets had actually used CFDs.
For its part, eToro states that CFD trading “allows you to trade an asset by entering into an agreement with eToro to reproduce market conditions without buying the underlying asset”, and specifies that “non-leveraged cryptocurrency transactions buy (long) is secured by real assets and sell (short) leveraged crypto trades are CFDs.” To simplify, with a CFD, you buy a financial security that is supposed to replicate the price of an asset (here a cryptocurrency), but you don’t actually buy this asset (here a cryptocurrency).
“France is an important market for us and we are pleased to offer our French users direct investment in digital assets. eToro’s goal is to make investing accessible to as many people as possible and we fully support all regulatory measures that protect retail investors without excluding those who benefit most or stifling innovation,” said Emmanuel Sackmann, eToro Regional Director France.
Founded in 2007, eToro boasts 27 million users worldwide and allows trading of all kinds of financial assets. Like many neo-brokers, eToro claims a “zero commission” offer. But if we take a closer look at its fee policy, it charges cryptocurrency CFD trading from 0.75% and also charges day-to-day fees for extending its position for more than one day (“ CFD positions that remain open overnight , incurs minimal fees relative to the value of the position,” eToro says on its website).