Through Etoro, investors can trade cryptocurrencies and other products such as stocks and options. This week, Etoro informed Dutch users that their crypto trading accounts will be closed from January 23. This is stated in an e-mail that was viewed by RTL Z.
Closing accounts can be detrimental to crypto investors who now have to sell and are at a loss. Etoro apologizes in the email to users.
In a written statement to RTL Z, Etoro says:
“Etoro is in the process of registering as a crypto service at De Nederlandse Bank. Until it has been decided, eToro will no longer be able to offer crypto services in the Netherlands. We apologize for the inconvenience this may cause.” Furthermore, Etoro emphasizes that the non-crypto-related services to Dutch customers will continue as usual.
A group of duped crypto investors are considering legal action. In the platform Etorosluitmijncrypto in which they are currently unifying, they say they are severely disadvantaged by the fact that Etoro is at odds with De Nederlandsche Bank. And that they have a negative return on certain crypto investments and are therefore not happy to sell.
An Etoro account manager also informed a customer that it should not be expected that Etoro will reach an agreement with DNB before 23 January.
Etoro: just go to the competitor
Etoro suggests clients who do not want to get rid of their cryptocurrency positions to sell the wallet with them and purchase the exact same wallet from a different platform. But also state that this is not ‘advice’.
The Company also informs customers that the “applicable profit or loss resulting from the foreclosure will be recognized in your balance sheet.” And that current action is consistent with the terms and conditions that customers have signed up to.
Costs of relocating investments by selling at Etoro and buying from another party are for the customer.
Originally Israeli Etoro is one of the larger crypto trading platforms and has been around since 2007. It is based in Cyprus. Worldwide, the company has 13 million users.
How many investors in the Netherlands are affected by the cessation of crypto activities is unclear. More than 100 investors joined the platform of duped users in the first day and a half.
Etoro had enough time to apply for the registration. In September 2019, DNB announced that there would be rules for companies that allow trading in crypto coins such as bitcoins, lite, ethereum and many others, a DNB spokesman emphasizes. Those rules are necessary to prevent money laundering.
In May of this year, the deadline for companies to register as a supplier of crypto services expired. DNB does not want to say whether Etoro was late because it does not make any statements about individual applications. November 21, the registration had to be in order to continue next year. .
‘The Netherlands strict’
According to crypto expert Madelon Vos, more crypto companies will soon have to cease their activities in the Netherlands because they have not completed the registration with DNB. “48 parties have applied for it. 15 have been registered now.”
Crypto platforms are not made easy in the Netherlands, says Vos. “The Netherlands is much stricter than other countries such as Germany, for example. The costs of the registration are also unclear. And you may wonder whether this registration, actually a license, must be done with DNB or the Financial Markets Authority”.