eToro introduces bankruptcy insurance policy, but cryptocurrency assets are not covered under the claims.

Not afraid of platform bankruptcy, the globally renowned brokerage platform eToro will now introduce a bankruptcy insurance policy. If eToro unfortunately enters a bankruptcy state, users can receive a maximum compensation of one million euros/pounds/Australian dollars, and the plan is free of charge, with users not needing to pay any additional insurance fees.

eToro Offers Free Insurance Plan

According to an announcement by eToro on the evening of November 2nd, the newly introduced bankruptcy insurance policy will be provided by Lloyd's of London, headquartered in the UK. The insurance plan will be completely free and applicable to all eToro users, without the need for additional registration or application.

The coverage of the insurance policy includes cash, all open CFDs, and securities. However, it is important to note that cryptocurrency trading is specifically excluded from this insurance policy, as cryptocurrencies are not considered "regulated assets."

In the UK, similar financial compensation schemes typically cover up to £85,000 (approximately $110,000 USD), indicating that eToro's compensation amount exceeds the average. eToro also emphasizes that the insurance policy will provide peace of mind for millions of users on their global platform. However, the announcement mentions that while the insurance policy has no expiration date, eToro reserves the right to withdraw it at any time.

eToro CEO Bullish on Cryptocurrency Trends

Despite excluding cryptocurrencies from its insurance policy, eToro is actively positioning itself in the cryptocurrency market given its large user base. With over 14 million global users this year, CEO Yoni Assia, an early Bitcoin investor active on forums like Bitcointalk since 2010, believes that the blockchain craze is different from the internet bubble of the past. He has stated:

My long-term view is that selling cryptocurrencies now is like selling Apple stock in 2001.

From 2016 to 2019, eToro's overall business volume increased by over 600%, including the boost from ICOs in the cryptocurrency market in 2017. Despite the waning enthusiasm in 2019, eToro continues to develop related products, such as establishing the eToroX cryptocurrency exchange and even launching common "ADA, TRX staking reward services" similar to those found on mainstream exchanges in early October.