eToro Announces Changes to Crypto Custody Services in Germany

eToro, the renowned Israeli social trading and multi-asset brokerage company, has announced a significant update for its German customers regarding the custody of their crypto assets. Starting from January 21, 2024, eToro will collaborate with Tangany GmbH, a Munich-based crypto custody service provider, to manage the custody of these assets. This change aligns with the guidelines set by the German Federal Financial Supervisory Authority (BaFin).

Key Changes and Dates for Customers

• Custody Transfer to Tangany GmbH: The transfer of crypto assets custody will commence on January 21, 2024, marking the end of eToro's crypto custody services in Germany.

• Options for eToro Customers: Users can sell or transfer their crypto assets using eToro's platform until January 21, 2024. After transferring assets to a new custodian, they cannot be sold via eToro.

• External Wallet Transfers: Customers wishing to move their assets to an external wallet must do so by January 15, 2024.

• Service Interruption During Transfer: From January 21 to January 29, 2024, there will be a temporary disruption in accessing crypto assets, including the eToro Wallet function.

Special Considerations for Certain Cryptos

• NEO, FIL, THETA, and LUNA: Due to technical constraints, these will not transfer to Tangany. Users must close their positions or sell these assets by January 20, 2024.

• (M)IOTA Assets: These can be converted to Wrapped IOTA on the Binance Smart Chain for transfer to Tangany. Alternatively, users can sell their (M)IOTA by January 20.

Benefits and Compliance

The partnership with Tangany is designed to provide secure, compliant, and efficient custody services for crypto assets. Importantly, there are no fees charged for the custody or the migration process. Regular trading activities on eToro and withdrawals from Tanganys custody will incur standard fees.

Staking and New Acquisitions Suspended

Following these changes, eToro will no longer offer staking services, and the acquisition of new crypto assets through eToro remains on hold.

The Evolving German Crypto Landscape

Germany has been progressively shaping a welcoming ecosystem for crypto custodians, evidenced by legislation enabling banks and specialists to manage digital assets. However, the regulatory terrain is complex, as highlighted by Binance's recent need to withdraw its application for a crypto license in Germany.

About eToro

eToro is a global leader in social trading and investment services, offering a diverse range of assets, including stocks, commodities, and cryptocurrencies. With a commitment to innovation and user empowerment, eToro has consistently been at the forefront of the financial technology industry. Adhering to strict regulatory standards, eToro prioritizes the security and interests of its global user base.