Copy trading platform eToro ceases crypto custody services
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eToro, a leading social trading and multi-asset brokerage platform based in Israel, has announced significant changes to its crypto asset custody services. These changes target eToro’s customers in Germany.
These services will no longer be available in Germany from January 21, 2024. eToro will migrate them to Tangany GmbH, a crypto asset custody service provider based in Munich. The operations of this company are run by the German financial market regulator, BaFin.
eToro Ceases Crypto Custody Services
Despite halting to provide these services, customers at eToro Germany will still sell and transfer crypto assets to other custodians via the eToro platform. With the assets transferred to another custodian, they will no longer be available on eToro.
Customers who are not using Tangany’s services can sell their crypto assets on eToro by January 21, 2024. They can also choose to transfer them to an external wallet by January 15, 2024.
The process of transferring these assets will commence on January 21, 2024, and it will close on January 29, 2024. Customers will not be able to access their digital assets during this migration period.
Some digital assets, namely THETA, NEO, FIL, and LUNA will not be transferred because of some technicalities. eToro customers holding these assets have been urged to sell them or close their trading positions by January 20, 2024, after which they will be sold automatically and deposited into the eToro accounts of customers.
Another exemption with the migration is with (M)IOTA. These assets can be exchanged for Wrapped IOTA on BNB Chain and then transferred to Tangany. Those who do not want to convert to Wrapped IOTA have to sell their tokens by January 20.
Offering Secure and Compliant Custody Services
According to eToro, the process of transferring assets to Tangany will offer secure and compliant custody services for digital assets. Tangany does not charge any fee for custody services or for the migration process.
The charged fee will be for trading activities on eToro. Customers will also have to part with a fee when withdrawing from Tangany’s custody.
eToro has also said that staking services will no longer be supported. eToro has also suspected the acquisition of new crypto assets on its platform by German users.
The crypto regulatory framework in Germany has evolved significantly, with the country passing laws enabling banks and crypto firms to manage digital assets and provide crypto services.
