A crackdown on crypto advertising could harm legitimate currency providers just as much as disreputable operators, according to eToro CEO Yoni Assia.
Social trading and investment platform eToro closed a $100m Series E earlier in the week, with the company being valued at $800m. China Minsheng Financial led the round, while participation also came from SBI Group, Korea Investment Partners, World Wide Invest and other backers.
One of the key areas of expansion?for?the platform will be boosting its capabilities for blockchain research and the development of digital assets like a blockchain wallet.
There has been a bumpy start for cryptocurrencies this year, with most talk being negative. The price of a lot of cryptocurrencies, most notably bitcoin, have plummeted this year and many governments around the world have been exploring regulations on the space.
Assia said, ?But despite the recent jitters, were actually seeing a continued level of long-term investor support, which is keeping prices from falling too far down. We expect there to be more volatility over the next couple of months, particularly as we hear more from governments and regulators.p>
A crackdown on crypto advertising has the potential to disrupt the market, according toe the company. Last week, Google announced via a blog post that it is updating its policies to address adverts for unregulated or speculative financial products. Adverts for cryptocurrencies, binary options, foreign exchange markets and contracts were on the list to be removed.
He added, ?Consumer safety is our number one priority, so we support the intention behind some of the recent announcements. That said, we would like to see these companies take a more nuanced approach. A sweeping ban means legitimate providers currently face the same restrictions as disreputable operators who unfortunately have been known to take advantage of consumers.p>
eToro is not against the regulations being implemented in the cryptocurrency space and actually welcomes their involvement as they play an important part of the growth within the sector. The are able to protect all clients and mitigate any fear, uncertainty or doubt within the market.
Over the next coming years Assia foresees investors developing a deeper understanding of the crypto marketplace and in-turn become more aware of the opportunities there are. ?Just like any other market, the assets that carry a real value which will stay with us, while those that do not will disappear. We also expect to also see the ICO market develop over the next few years, and increasingly challenge the traditional fundraising ecosystem.p>
Founded in 2007, eToro supports consumers with investing into traditional asset classes like stocks, commodities, currencies, and indices, as well as cryptocurrencies. The platform offers three routes for investing to support people of all experiences.
With the new line of capital, the company is also looking to develop its technology infrastructure and enter in to new areas. eTORO is looking to expand across the globe and will asses them all on an individual basis. He added, ?Moving into new territories always presents certain challenges, which largely stem from a lack of understanding of how that market works. That why it critical to work with partners and investors who can help you to understand the local nuances and dynamics.p>
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