Crypto platform eToroX, a digital asset subsidiary of investment platform eToro, has been granted a Distributed Ledger Technology (DLT) licence from the Gibraltar Financial Services Commission (GFSC).
Launching in 2018, eToroX was designed to execute eToro’s objective to provide investors access to cryptoassets, enabled by blockchain technology. The platform hopes to lead the development of cryptoassets and regulatory framework for DLT businesses as tokenisation of assets grow in popularity.
The GFSC has designed a new licensing model which requires companies to comply with the nine-strong list of principles to be granted a DLT license. The principles include requirements which prevent, detect and disclose financial crime risks such as money laundering and financing terrorist activities which are becoming a priority to regulate.
Doron Rosenblum, Managing Director of eToroX, said in a statement: “We believe that a strong system of regulation will support the mass adoption of blockchain technology. Whilst blockchain brings some unique challenges to regulators, we can protect users and help support new ideas by applying the same fundamental principles as we have in other financial markets.
As a result of the DLT license, eToroX will be managing eToro’s newly launched wallet and exchange, both currently in beta. Using blockchain technology, eToroX’s wallet enables its customers to transfer cryptoassets away from the platform. The wallet is being rolled out on a phased basis in terms of geography and functionality.