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The CEO of eToro believes that regulatory authorities should devise new rules and regulations for cryptocurrencies. He also advises that policymakers should understand cryptocurrency and its potential.
Yoni Assia, CEO of eToro believes that for putting new regulations in the cryptocurrency industry, it is essential to understand the cryptocurrency and its potential. He advises the officials to first be fully equipped with the nuances of the crypto industry before introducing new rules and regulations.
eToro is a cryptocurrency trading platform and a growing stock and derivatives exchange that was formed in 2007. The platform started the crypto services in 2013 and since then there has been no stopping for this giant.
While sharing his views on the new rules and regulations, Assia said that regulators should devise new rules to protect the interest of the investors in bitcoin and other digital currencies. He gave the example of Binance which was controlled wonderfully by the UK.
Advice to policymakers
There is a significant jump seen in the interest of retail investors and traders in the crypto market. As part of the growth, the regulators should look closely at the growing business of retail investors.
The regulators, in the beginning, were not much interested in looking forward to the growing business of the retail investors in crypto but after the remarks of Assia, the industry has got recognition and the policymakers are also taking it seriously.
Assia also opines that there is a need for regulators to learn more about cryptocurrencies as they draft the new laws. The regulators should understand that crypto is here to stay and the laws are to be made accordingly.
US expansion
eToro is Israel’s Robinhood. It is a fast-growing trading platform that has attracted a new generation of investors from the U.S. 70% of the eToro users are from Europe and only 9% of the users are from the U.S. eToro is trying to establish its name on the U.S. soil with its plans for expansion in the country. The company in a few weeks will merge with a special procurement company Spac. However, eToro has not offered direct stock trading. But it can enjoy the services of crypto trading and cryptocurrencies.
As the bitcoin prices were soaring at the beginning of the year and rose to $1.5 tons, the Drum stressed more regulations. There was extreme price volatility and the cases of money laundering, fraud were also increasing during the period.
US authorities to play a more active role
The UK financial conduct authority has banned Binance this week from offering cryptocurrency exchanges and other services. Following the lines of UK strict regulations, U.S. authorities are also gearing up to play a more active role in regulating the market.
Assia said that they are confident to expand work in the U.S. and assure to communicate risks of investing in high-risk assets well. He knows that the asset which has gone up to 100 percent will come down to 50 percent as well. There is no doubt that if something has surged by a thousand percent, it is very volatile.
eToro growth journey
The younger generation is more likely to be attracted to the use of cryptocurrencies. The increase in the easy-to-use trading platforms and interest in cryptocurrencies and meme shares has attracted a lot to this new generation.
Since the company started its cryptocurrency business in 2013, the number of funded accounts rose by nearly 5 lakhs in the first three months of 2021. The growth has been more than the past two years, taking the total to 1.5 million.
The number of registered users with the company has surged by 3 million to 20.6 million in the first quarter, which can be compared to the 5 million new registrations in 2020. The company has received $347 million as the total commission for trading in the first quarter. There is an increase of 141% year on year. Net trading revenue rose 72 percent to 269 million dollars.
The net profit of the company decreased more than 90 percent to five million dollars over the same period. This is because the company had spent a lot of money on advertising. Now, the company has done a deal of $104billion to buy Spac Values. However, the shareholders are yet to vote on the deal.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
