Australian Regulator Takes Legal Action Against eToro Over High-Risk and Volatile Trading Products

The Australian Securities and Investments Commission (ASIC) has filed a case in the Federal Court against the online investing platform eToro Aus Capital Limited about the suitability of eToro’s target market for contract for difference (CFD) products.

The case is being brought about the appropriateness of eToro’s target market for CFD products. The Australian Securities and Investments Commission (ASIC) asserts that eToro’s target market for contracts for difference (CFDs) was far too wide for such a high-risk and volatile trading product, and that the platform used inadequate screening measures, which resulted in violations in the company’s design and distribution duties.

Customers are given the opportunity to speculate on the value of underlying assets via the use of CFDs, which are leveraged derivative contracts. The conduct of eToro, according to ASIC’s assessment, undoubtedly exposed a substantial number of retail customers to CFD products that were not suitable for their investment goals, financial status, or requirements, which resulted in a considerable risk of consumer damage.

Trading contracts for difference (CFDs) resulted in financial loss for roughly 20,000 of eToro’s customers between October 5, 2021 and June 14, 2023. According to the information provided on the eToro website, the majority of retail investor accounts on the platform end up losing money when they trade CFDs.

Sarah Court, the deputy chair of ASIC, expressed her dissatisfaction in what is purported to be a lack of compliance on the part of eToro and stressed that CFD issuers are required to conform with the design and distribution framework.

In addition to this, she emphasized the need of limiting the scope of CFD target markets in order to avoid suffering major financial losses. The Australian Securities and Investments Commission (ASIC) has leveled a number of claims, and eToro has said that the company is exploring how to react.

Since then, the company has made some adjustments to their CFDs target market assessment, and they have stated that there would be no effect on their service or interruption to their overall operation. eToro places a strong emphasis on its commitment to complying with regulatory requirements and working closely with them.

The Australian Securities and Investments Commission (ASIC) has in the past taken administrative action to safeguard customers from high-risk CFD trading, such as placing stop orders against other businesses.

This case highlights regulatory issues about the management of high-risk CFD products as well as the possible hazards that are presented to ordinary investors. As the legal procedures progress, a careful eye will be kept on eToro’s reaction as well as any following steps it takes.

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eToro and Robinhood Modify U.S. Cryptocurrency Offerings Amidst Regulatory Changes

The global cryptocurrency landscape is witnessing significant shifts, with leading trading platforms, eToro and Robinhood, adjusting their U.S. cryptocurrency offerings. Both platforms are responding to the rapidly evolving regulatory environment in the United States, affecting popular cryptocurrencies such as Algorand (ALGO), Decentraland (MANA), Dash (DASH), Polygon (MATIC), Solana (SOL), and Cardano (ADA).

Starting at 6:00 AM ET, Wednesday, July 12, 2023, eToro U.S. customers will not be able to open new positions in Algorand, Decentraland, Dash, and Polygon. Despite the changes, users will still have the ability to hold and sell existing positions in these cryptocurrencies.

Just a month earlier, on June 9, Robinhood also made headlines when it announced the delisting of Solana, Cardano, and Polygon. This follows recent charges by the U.S. Securities and Exchange Commission (SEC) against Binance and Coinbase, alleging that these platforms traded unregistered securities. Given these circumstances, analysts predict a further decline in cryptocurrency trading activity on Robinhood.

Both eToro and Robinhood’s decisions highlight the complex nature of global cryptocurrency regulations and the need for platforms to adapt swiftly to protect user interests and ensure compliance. The trading platforms’ strategic shifts are significant for users seeking updates on cryptocurrency strategies amidst a dynamic U.S. regulatory environment.

Despite the changes, eToro remains committed to promoting a diverse range of asset classes, including stocks, Exchange Traded Funds (ETFs), and options, reinforcing their support for crypto assets. The company also pledges to work closely with regulators around the world to shape the future of the crypto industry and advocate for access for everyday investors.

This news reaffirms the unique challenges cryptocurrency platforms face while navigating regulations. Changes to crypto offerings, especially in the U.S., are provoking discussions about the future of crypto regulation. As the regulatory landscape continues to evolve, investors and users will be closely monitoring platforms like eToro and Robinhood for further updates.

eToro encourages customers with queries about these changes to contact its customer service team. Meanwhile, industry watchers anticipate more platforms to realign their strategies in response to changing regulations, impacting the availability and trading of various cryptocurrencies.


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Twitter Rolls Out Bitcoin Price Quotes

The addition of Bitcoin price quotations to Twitter’s social media platform occurred around the 18th of April. The price quotations are provided by the charting platform TradingView, however they are only accessible for the price of Bitcoin. Price quotes for other major cryptocurrencies are not provided. The accompanying Bitcoin price chart includes a link that users may use to purchase or sell Bitcoin on the Israeli cryptocurrency market known as eToro. In addition, a caution that reads “Your Capital Is At Risk” is shown beside the chart that displays the price of bitcoins.

Twitter has emerged as an essential component of the retail investing community, and it is anticipated that the inclusion of Bitcoin price quotations will play a big role in the dissemination of financial news and the acquisition of information. The implementation of “$Cashtags” has the goal of elevating users’ familiarity with the Bitcoin market on the site and encouraging more user participation therein.

Elon Musk made the declaration on the 17th of April that he would develop a piece of artificial intelligence software that he would call “TruthGPT” in order to battle what he considers to be a left-wing bias in the media business. It is anticipated that the AI software would actively seek the truth and encourage impartial reporting.

While Twitter is the most recent social platform to integrate Bitcoin price quotes, on April 10th, Douyin, the Chinese counterpart of TikTok, began providing Bitcoin price quotes to an estimated 730 million users in Mainland China. Twitter is the most recent social platform to incorporate Bitcoin price quotations. The quotations were, however, taken down a day later and replaced with a statement that warned users that “unofficial digital currencies do not possess the same legal standing as fiat currencies.”

The introduction of Bitcoin price quotations on Twitter’s social media platform is a big step towards expanding knowledge of and involvement with the cryptocurrency market on social media. This is because Twitter is the largest social media platform in the world. In addition to this, it brings to light the ever-increasing significance of cryptocurrencies in the financial sector, as well as the need of reliable information and impartial reporting.


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Twitter to Add Cryptocurrency Trading

Twitter is set to expand its offerings by launching a new feature that will allow users to trade cryptocurrencies and stocks, according to a report by CNBC. The social media giant has partnered with fintech firm eToro to bring the new financial features to its platform. This is the first notable deal for Twitter since Elon Musk took over as CEO in 2020, after acquiring the social media network for $44 billion.

The new feature can be accessed through a “view on eToro” tab, which will take users directly to eToro’s trading platform. The fintech company, which was founded in 2007, introduced cryptocurrency trading features and a crypto wallet in 2019. With this new partnership, eToro hopes to bring a new audience to the Twitter platform, while Twitter aims to offer more financial services to its users.

Yoni Assia, the CEO of eToro, has called the partnership a perfect match. He believes that Twitter has become an important part of the retail investing community, with many users accessing financial news and acquiring knowledge on the platform. Assia added that “cashtags” searches have grown into the millions, indicating a growing interest in financial discussions on Twitter.

The partnership comes at a time when financial Twitter has become a trend, and was key to the retail trading boom in 2021. This new feature is expected to play a central role in this conversation and is already gaining a lot of traction. Assia also noted that this partnership is a significant opportunity for eToro to expand its customer base and reach more users who are interested in trading cryptocurrencies and stocks.

Meanwhile, Elon Musk has expressed his ambition to turn Twitter into “the biggest financial institution in the world.” In a recent interview, he floated the idea of turning Twitter into a “super app,” offering users access to several online services in one place. This concept is quite popular in China, where super apps function as a gateway to everything a consumer needs in their day-to-day life. WeChat, for example, offers instant messaging, social media, travel and hotel booking, banking and more.

In conclusion, the partnership between Twitter and eToro is a significant step towards offering more financial services to Twitter users. It also provides an opportunity for eToro to reach a wider audience interested in trading cryptocurrencies and stocks. The move also aligns with Musk’s ambition to turn Twitter into a super app, offering users access to various online services. It remains to be seen how successful this new feature will be and whether it will attract a significant number of users to the platform.


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Crypto Adoption Among Women on the Rise

According to a recent poll, conventional asset classes have not been successful in getting more women into the investment space. However, crypto seems to have been successful in bringing women on board. The findings of the poll indicate that there has been a notable increase in the number of women who possess cryptocurrency. According to the data, the percentage of people who owned their home rose from 29% in the third quarter of 2022 to 34% in the most recent quarter.

The team at eToro believes that this indicates that cryptocurrency is “succeeding where conventional financial markets have sometimes failed,” and one way that it is doing this is by attracting a greater number of women.

During the last three months of 2022, the rate of crypto adoption among women skyrocketed, whereas the rate of crypto ownership among males climbed by just one percent during the same time period. The percentage of worldwide investors that own cryptocurrency increased from 36% to 39% from the previous quarter, despite the fact that cryptocurrency was regarded as the asset class that performed the poorest over the course of the previous year.

In addition to being pushed by the participation of women, the data was also affected by the participation of elderly investors who bought the dip.

The percentage of retail investors aged 35–44 and 45–54 who own cryptocurrency increased by 5 percent apiece, which suggests that older investors are also acquiring crypto.

Regarding the question of why more investors are getting involved in cryptocurrency, 37% of those who took part in the survey said they are seizing the opportunity to make high returns, while 34% of those who took part in the survey said they believe in the power of blockchain and think cryptocurrency is a transformative asset class.

Retail investors aren’t the only ones who are showing their faith in blockchain technology by making investments; corporations are beginning to do the same thing.

The results of a poll conducted by Casper Labs on January 12 revealed that of the 603 companies that took part in the study, 90% had already used blockchain technology in some form.


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eToro Cancels SPAC deal with FinTech Acquisition Corp. V. Company

Social investing network eToro Group announced Tuesday that it has cancelled its planned public listing through a merger with FinTech Acquisition Corp. V. SPAC (special purpose acquisition company).

eToro said that the closing conditions agreed upon by the two firms when the merger was proposed in March last year have not been met.

The two firms announced the proposed merger in March 2021, but further agreements and amendments have failed to meet the closing conditions within the enshrined timeframe.

As a result, the two companies have not been able to complete the transaction deadline by June 30, which prompted the cancellation of their planned merger for an initial public offering (IPO).

When the two parties announced their plan in March last year, eToro stated that it was expecting a valuation of $10.4 billion. On the other hand, FinTech V Chairman Betsy Cohen cited the strengths of eToro as a social trading enterprise outside the US and its multiple income streams. In other words, the merger entity was supposed to create a combined entity worth $10.4 billion, reflecting an implied business value for eToro of an estimated $9.6 billion.

However, the latest meeting between the two firms has brought new revelations. Betsy Cohen, Chairman of Fintech V, talked about the development and said: “The transaction has been rendered impracticable due to circumstances outside of either party’s control.”

eToro CEO Yoni Assia, also commented: “While this may not be the outcome that we hoped for when we started this process, eToro’s underlying business remains healthy, our balance sheet is strong and will continue to balance future growth with profitability.”

Since the two firms mutually agreed upon the decision, there is no termination fee required by either party for payment.

Market Plunge Affecting SPAC Deals

The cancellation of the eToro SPAC deal comes at a time when crypto firms that have been making attempts to go public since the bull market last year have remained stuck in lengthy ups and downs with the US Securities and Exchange Commission (SEC).

Efforts by crypto firms to merge with blank-check companies have been facing increased scrutiny from the accountants at the SEC because crypto-assets raise unique bookkeeping issues.  

Besides that, dates for closing multibillion-dollar deals involving crypto firms (such as eToro, Bullish Global, and Circle Internet Financial Limited, among others) going public have been postponed several times and even terminated because of the bad market environment.

SPACs were the hottest way in which Wall Street pursued to hit the public market. However, the craze has declined amid the current market crash together with SEC’s demanding regulations.

Due to the current extreme market conditions, SPACs have been volatile and are on a downward trajectory. This implies that parties involved in SPAC deals are forced to reprice them to reflect the current market conditions. The SEC has also been more cautious about the SPAC process, especially crypto-related deals.

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Social Trading Company eToro Establishes $20m NFT fund

Cryptocurrency trading platform eToro has established a $20 million Non-fungible token (NFT) fund to buy NFTs and support creators and brands in the industry, according to CNBC. - 2022-04-08T155915.154.jpg

The launch of fund is part of eToro art’s plans and implies that eToro will create more services for investors and take a big step toward the NFT market.

NFT is a special type of encrypted token that represents unique collectables. An NFT is used in specific applications that require unique digital items, such as encrypted art, digital collectables, and online games.

Guy Hirsch, U.S. managing director of eToro, said that before NFTs, only big traditional financial tycoons such as Goldman Sachs could step into the cryptocurrency space; however, “NFTs are essentially making any and every potential brand a participant in this market.”

Founded in 2007, eToro has been a leader in the global Fintech revolution, empowering people to invest by giving them access to international markets. From cryptos to stocks and commodities, eToro has made trading easy and social, creating a solid community of over 12 million traders worldwide.

In the past few months alone, well-known brands in various industries, including Starbucks, Coca-Cola, McDonald’s, Nike, etc., have joined the NFT track,

Hirsch added that:

“Any brand can hone in on this and create some sort of an NFT that represents an ownership stake in part of the brand,”

As part of the program, the trading platform showcases renowned digital art collections, including Bored Ape Yacht Club, CryptoPunks, and World of Women.

eToro said it would also commit $10 million to support emerging creators and brands, bringing their new NFT projects to market.

Image source: Shutterstock


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Cryptocurrency Investors Are More Attractive on The Dating Scene (Study)

According to a recent survey conducted by the trading platform eToro, many single men and women are seeking partners who are not only financially stable but also knowledgeable about cryptocurrencies. 33% of the American participants admitted they are more likely to go on a date with someone who deals with digital assets.

Crypto Makes Individuals More Desirable

Apart from diversifying one’s portfolio and granting potential for higher returns, cryptocurrencies could also make investors look more attractive on the romance scene, eToro research revealed.

Every third participant said they are more likely to go out with a crypto holder rather than a person who has not delved into the digital asset space. Furthermore, nearly 75% admitted they would go on a second date with an individual who paid the bill in bitcoin (BTC).

There are numerous restaurants and cafeterias in the States which accept the primary cryptocurrency as a payment method. Such examples are the Colorado-based Quiznos and the multinational chain of coffeehouses – Starbucks.

People delving into the non-fungible token universe also have their chances. According to the survey, 20% of singles would be more interested romantically if their admirer sets an NFT as a profile picture on a social platform or a dating site.


According to Pew Research Center’s estimations, 16% of Americans have already allocated some of their wealth in the crypto market. Younger men between 18 and 29 years old (most active on the dating scene) are the most interested in the asset class. 43% of them have already dipped their toes in the digital asset industry. In comparison, only 19% of women under 30 years old invest in bitcoin or the alternative coins.

The overall cryptocurrency awareness among American citizens is also on a high level. 86% of the survey participants admitted they have basic knowledge about the asset class.

Every Fourth US Investor Owns BTC

According to another survey conducted by the world’s largest digital asset manager – Grayscale – 26% of the American investors hold bitcoin. Moreover, 60% of the participants admitted they are interested in cryptocurrency investments.

Subsequently, Grayscale estimated that 55% of the current BTC holders in the States have hopped on the bandwagon in the last 12 months.

The crypto exchange Huobi went further, stating that 7 in 10 of the holders entered the market in 2021. Per the company’s research, only 9% started investing in the asset class more than four years ago.

Nearly every second investor revealed allocating $1,000 or less in crypto, while 25% said they have invested between $1,000 and $10,000.


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UK advertising watchdog bans crypto ads for Coinbase and Kraken

The Advertising Standards Authority, or ASA, the United Kingdom’s independent advertising regulator, has taken down another batch of cryptocurrency-related ad campaigns promoting several major industry firms.

On Dec. 15, the advertising watchdog issued several rulings on ad violations involving six crypto-related firms including Coinbase, Kraken, eToro, Exmo, crypto broker Coinburp and Luno crypto exchange. The ASA also issued a similar ruling for pizza chain Papa John’s.

All seven ads or promotions were banned for “irresponsibly taking advantage of consumers inexperience and for failing to illustrate the risk of the investment,” the rulings said.

The ASA argued that Coinbase’s European branch specifically put out a “misleading” promotion on its paid Facebook ad in July 2021, including a text stating “five pounds in Bitcoin in 2010 would be worth over 100,000 pounds in January 2021.”

According to the advertising regulator, the ad “implied there would be a similar guaranteed increase in Bitcoin value over the next decade.” Coinbase Europe also “did not make clear that past performance was not necessarily a guide for the future,” the ASA noted.

Another ASA’s ruling was against Kraken operator Payward, related to a digital poster for Kraken seen in August 2021 at London Bridge station. The watchdog argued that the ad lacked a proper risk warning as a risk disclaimer was only shown “for one second.”

“The risk warning only ran for one second at the beginning of a 20-second ad and we considered it presented the consumer with a large amount of information that would not be fully read or understood even if it was seen at all,” the ruling reads.

Related: UK politicians say cryptocurrency is ‘not an investment’

The latest regulatory moves by ASA join a number of similar rulings made earlier this year as the authority has been actively hunting and shutting down misleading crypto adverts.

In May, the ASA took down another ad campaign by Luno exchange. The ad was shown across the London Underground network and on London buses this year, with posters including an image of Bitcoin saying: “If you’re seeing bitcoin on the Underground, it’s time to buy.” The regulator previously banned an ad campaign by Coinfloor exchange.