eToro Receives Approval to Operate in UAE
eToro’s foray into the UAE comes amidst a period of global expansion for the platform.
The retail and social trading giant eToro recently announced that it has received a license from the Abu Dhabi Global Market (ADGM) to operate as a broker in securities, derivatives, and crypto assets in the United Arab Emirates (UAE).
eToro Bags Significant License
Yoni Assia, the Founder and CEO of eToro, expressed his enthusiasm, stating:
“It is a key milestone in our continued global expansion. Abu Dhabi is increasingly recognized as a growing fintech hub, and we are excited to become part of this flourishing ecosystem.”
As part of its expansion strategy, eToro is keen on deepening its relationships within the UAE. The company recognizes the potential of the region’s growing investor base and aims to provide them with a platform that not only facilitates trading but also fosters financial education and community engagement.
The full license comes after eToro received in-principal authorization to operate within the region over a year ago, showcasing the company’s commitment to meeting local regulatory standards. This approval not only positions eToro as a reliable player in the UAE’s financial ecosystem but also highlights the platform’s dedication to compliance and transparency.
Arvind Ramamurthy, Chief of Market Development at ADGM, welcomed the approval, emphasizing that eToro’s participation will strengthen the UAE’s standing as the largest regulated jurisdiction for virtual assets in the MENA region.
To further solidify its presence in the region, eToro has made strategic appointments. Jason Hughes joins as the Senior Executive Officer for the Middle East, while George Naddaf takes on the role of Regional Manager of GCC & MENA. These appointments demonstrate eToro’s dedication to building relationships and understanding the unique dynamics of the UAE market.
eToro’s Global Expansion amid Valuation Changes
eToro’s foray into the UAE comes amidst a period of global expansion for the platform. The company recently secured a license from the Cyprus Securities and Exchange Commission (CySEC), expanding its operations in Europe.
However, it’s worth noting that eToro’s valuation has experienced a decline, shrinking by $800 million from the previous figure of $2.5 billion, according to an assessment in August. Despite valuation fluctuations, eToro’s strategic moves and regulatory approvals highlight its resilience and commitment to growth.
Additionally, eToro announced its readiness to offer crypto-related services in the European Union (EU) following the approval of its application for registration under the Crypto Asset Service Provider (CySEC CASP). The platform anticipates providing these services after the Markets in Crypto Assets (MiCA) regulatory framework goes into effect in the fourth quarter of 2024.
Furthermore, eToro recently introduced the XtremeWeather portfolio. This innovative offering aims to provide retail investors with exposure to companies equipped to address challenges arising from extreme weather events.
The portfolio comprises 30 stocks from industries crucial to recovery and normalization after extreme weather events, such as renewable electricity, industrial machinery, home improvement retail, and more.
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