A BitLicense is a business license required by companies conducting virtual currency activities in the state of New York in the US. The New York State Department of Financial Services (NYSDFS) issues these licenses.
Also known as a Virtual Currency Business Activity License, a BitLicense has three purposes:
- Adopt regulations that prevent money laundering
- Protect consumers
- Establish rules regarding cyber security.
A BitLicense only applies to companies that send, hold, buy, sell, manage or spend cryptocurrencies. A New York-based company does not need a BitLicense to receive cryptocurrency as payment.
So far, several companies have obtained a BitLicense. Gemini, Ripple, Coinbase, Square, BitPay, Coinsource, and Robinhood are examples of such companies. It is not easy to get a BitLicense. Many of these companies had to wait a while between applying for their BitLicense and receiving it.
In May 2018, Fortune reported that Genesis Global Trading (the fifth BitLicense beneficiary) had to wait almost three years for approval, while Japan-based BitFlyer had to wait more than a year for a license from New York.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.