The approval, granted under the European Union’s sweeping Markets in Crypto-Assets (MiCA) regulations, means eToro will no longer rely on a third-party German partner, effectively bringing more of its operations in-house.
Starting around Oct. 30, 2025, eToro Europe Ltd. — the company’s Cyprus-based unit — will become the direct provider of all crypto trading services for German clients. This ends a partnership with DLT Finance, a local crypto service provider. eToro noted that the transition will be “seamless” for users, however, users must accept new Terms & Conditions, or they will lose trading privileges.
The User Ultimatum
A pop-up will confront German users on their next login, requiring them to accept the revised terms to continue trading after an Oct. 5 deadline. Those who refuse will be blocked from executing new crypto trades, though their existing assets will remain safe with current custodian Tangany GmbH, available for withdrawal.
Notably, the new agreement secures client consent for eToro EU to potentially take over custody of assets at a later date. The company says this future shift would “enable broader access to cryptoassets” not currently available, hinting at an expanded product lineup once the regulatory infrastructure is fully controlled.
With that, eToro is not operating as a “MiCA trading platform,” a regulated exchange venue. Instead, it acts as the client’s direct counterparty for trades, a model that is compliant under MiCA but executes orders outside of formal trading venues.
Cracks in the Unified Front
In the meantime, a significant debate is emerging within the EU regarding the supervision of crypto firms, highlighting early challenges in the bloc’s new regulatory framework. French financial authorities have indicated they may take the unprecedented step of blocking the domestic operations of crypto companies licensed in other member states.
The dispute revolves around the practice of “regulatory shopping,” where firms are accused of seeking authorization in member states perceived to have less stringent requirements. This strategy allows them to obtain a license that provides a passport to operate across the entire EU.
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