The cryptocurrency trading marketplaces in the U.S. are set to get more competition as the social investing platform, eToro, has announced plans to launch a cryptocurrency exchange and mobile wallet services in the U.S., reports CoinDesk.
US Exchange to Support 10 Cryptocurrencies
The services are expected to be rolled out in the U.S. during the second half of 2018, and the interested applicants can join the waiting list. The platform will initially support 10 different cryptocoins that include Bitcoin, Ethereum, Litecoin, Ripple, Dash, Bitcoin Cash, Stellar, Ethereum Classic, NEO and EOS. eToro will offer trading and exchange services in these virtual tokens.
The minimum investment required will be $25, and the platform will support debit cards and ACH at the launch. Credit card payments will be added later. The platform will also allow mock trading opportunities before the platform goes live.
eToro also plans to roll out a digital wallet which can be used to send and receive payments in various cryptocoins.
The eToro platform, with social features similar to Facebook and Twitter, allows its users to follow prominent traders, investors, and topics using the platform’s customized news feeds. eToro plans to invite top cryptocurrency traders in the U.S. to join the platform after its launch in the U.S. It also runs a promotional program to pay such elite traders who are widely followed.
"If the market is bitcoin, then every time there is a mention about bitcoin by some other user you'll be able to see that in your news feed. You'll be able to comment on that, share that or like it. Similarly, you can start a conversation about bitcoin, then other people who have bitcoin on their watch list will be able to see your post," Guy Hirsch, eToro's U.S. managing director, told CoinDesk.
“eToro will continue to focus on simplicity and user-friendliness so that more diverse groups will feel welcomed into the global crypto community,” said the Chief Executive Officer and co-founder, Yoni Assia, adding that the company will focus primarily on the individual investors and traders.
The eToro U.S.A. entity is registered with the Financial Crimes Enforcement Network as a money transmitter and will be based in New Jersey.
The Tel Aviv, Israel-based startup that was launched in 2007 has successfully raised more than $162 million, and has more than 10 million global users across Asia, Europe and the Middle East. eToro has various entities registered at different locations for the necessary regulations. eToro Europe Ltd. is authorized and regulated by the Cyprus Securities Exchange Commission and eToro UK Ltd. is authorized and regulated by the Financial Conduct Authority, according to the company’s website. (See also, eToro Platform Walkthrough 2018.)