As an analyst with extensive experience in the digital asset market, I find this development between eToro and DLT Finance to be a strategic move that could significantly enhance the trading landscape for German customers. With my background in understanding the intricacies of cryptocurrencies, I am particularly excited about the potential for direct access to assets like Bitcoin and Ethereum.
As a researcher, I’m excited to share that I’ve been working with eToro, a renowned global crypto trading platform, on an exciting development. We’re partnering with DLT Finance, a move aimed at broadening our services to German clients. This collaboration empowers our German customers to directly trade digital assets using DLT Finance as the counterparty for all transactions.
As per the latest news, the new service is set to debut within a few weeks. Previously, eToro’s German clients were limited to trading cryptocurrency CFDs (Contracts for Difference), allowing them to bet on crypto asset price fluctuations without holding the assets themselves. But thanks to this collaboration with DLT Finance, customers will now be able to diversify their investments by purchasing a wider variety of digital currencies like Bitcoin and Ethereum. Here are some key details about these two digital assets:
eToro Names Tangany as Custody Partner
According to the agreement, eToro will offer a secure trading environment for cryptocurrencies, and DLT Finance will carry out the trade executions. Furthermore, both entities have chosen Tangany GmbH as their trusted ally to safeguard their digital assets.
Tangany and DLT Finance, both, fall under the regulatory oversight of the German Federal Financial Supervisory Authority (BaFin). This regulation adds an extra level of safety and ensures compliance with financial standards.
To initiate cryptocurrency trading using the newly implemented system, eToro users based in Germany must acknowledge and accept updated Terms and Conditions from eToro, DLT Finance, and Tangany. Additionally, they might be required to undergo a video identification check for verification reasons.
Costs and Privacy Considerations
As a researcher, I find myself exploring the exciting possibilities that this new partnership brings. Yet, it’s crucial to acknowledge that it does alter the platform’s operational dynamics. For instance, certain functionalities such as limit orders, stop-loss, and take-profits will no longer be applicable for transactions involving DLT Finance. However, I want to clarify that the existing crypto CFD positions shall remain untouched by these changes, allowing users to carry on utilizing these features for CFDs.
In the context of copy trading, all freshly opened crypto positions are considered Contracts for Difference (CFDs), rather than actual crypto acquisitions.
Additionally, it’s important to note that eToro’s cryptocurrency wallet won’t be accessible for German users. Yet, they can move their crypto investments to other licensed German crypto custody providers like Tangany, if desired. This setup allows those who prefer a more flexible approach towards their digital assets to operate within regulated frameworks.
Besides the recent updates, DLT Finance announced they’ll impose a 1% charge for both purchasing and selling cryptocurrencies, which might undergo future modifications. Furthermore, as part of this collaboration, user’s personal information will be exchanged among eToro, DLT Finance, and Tangany. However, all parties have promised to safeguard users’ data effectively and in compliance with their respective privacy policies.
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2024-09-24 12:09