New York doesn’t hand out crypto approvals easily. That’s why eToro’s latest milestone stands out.
The social trading platform has secured both a New York BitLicense and a money transmission license from the New York State Department of Financial Services. This approval clears the way for residents of New York to trade cryptocurrencies on the platform, something they couldn’t previously do. With this expansion, eToro now offers crypto services in 48 U.S. states.
For a company that recently faced regulatory pressure in the United States, this approval marks a significant turning point.
Jemi Motesho
Why the BitLicense Matters
New York’s BitLicense regime has been in place since 2015. It's widely seen as one of the strictest state-level crypto frameworks in the country. Only a limited number of firms have managed to secure approval under its rules.
The license requires companies to meet high standards around capital requirements, compliance systems, cybersecurity controls, and consumer protection. For many crypto firms, the cost and complexity have kept them away from the state altogether.
By securing this approval, eToro joins a small group of platforms that can legally offer crypto trading to New York residents. At the same time, New York remains one of the largest financial hubs in the world, and access to its market adds both credibility and scale.
Andrew McCormick, head of eToro’s U.S. division, described the approval as more than just a checkbox. “New York is the heart of the financial markets and a hub of innovation,” he said, calling the expansion “both a strategic milestone and a reflection of our commitment to responsibly advancing the next generation of financial market accessibility.”
eToro’s Comeback After the SEC Settlement
This expansion comes after a challenging chapter for the company. In 2024, the U.S. Securities and Exchange Commission charged eToro with operating as an unregistered broker and clearing agency in connection with certain crypto assets. The company agreed to pay a $1.5 million civil penalty to settle the matter.
As part of that settlement, eToro significantly reduced the number of crypto assets available to U.S. users. It reworked its compliance systems and took a more cautious approach to the American market. That retrenchment mirrored a broader regulatory crackdown that pushed many platforms to rethink how they operated in the United States.
Instead of exiting the market entirely, eToro chose to rebuild. It narrowed its token offerings, strengthened its compliance framework, and worked toward meeting stricter regulatory standards. The New York approval shows that the strategy has paid off.
Who Is Behind eToro’s U.S. Push?
To understand how eToro got here, it helps to look at the company’s background. Founded in 2007 in Israel, eToro built its brand around social trading. The idea was that users couldn’t only trade stocks and crypto but also follow and copy the strategies of other investors.
Over time, the platform expanded into global markets, offering access to equities, commodities, forex, and digital assets. In the United States, however, regulation has always shaped its path. Unlike some crypto-native exchanges, eToro began as a broader brokerage-style platform, which placed it under multiple regulatory frameworks.
Andrew McCormick has been leading the U.S. division through this period of adjustment. Under his watch, the company shifted from rapid expansion to regulatory consolidation, focusing on building a structure that could stand up to scrutiny from both federal and state regulators.
That slower, more deliberate strategy now appears to be opening doors that were previously closed.
For eToro, the BitLicense is more than a regulatory win. It’s a signal that the company intends to stay and compete in one of the most closely watched financial markets in the world. And after a period of retreat, that return may prove just as important as the expansion itself.
Jemi Motesho
