Trading network eToro will release their crypto wallet by August of 2018 ahead of their exchange launch in Q4 2018.
The exchange will follow regulatory compliance in Gibraltar, which still needs to be finalized.
Managing director Iqbal Gandham said:
“We are launching our crypto exchange and wallet soon. We’re looking at the exchange coming out within the next quarter, we’re looking at Q4. I feel the wallet release date will probably be towards the end of July, if not early August. The exchange will follow certain regulatory priorities which will happen in Gibraltar. It may get accelerated if Bitcoin’s price goes up to $20,000.”
Gandham said that eToro is expanding into the United States and has started going through regulatory processes to establish licenses. He went on to say that the U.S. is a “phenomenal market for crypto assets.”
It should be noted that the United States has some of the sternest regulations in the world, so if eToro is fully compliant with U.S regulations it will add another layer of trust and will further legitimize the company.
eToro recently revealed that they are assembling an over the counter (OTC) trading desk in London for institutional investors. Iqbal Gandham said that it could potentially be operational by the end of the year. This announcement comes within days of Coinbase’s launch of their custody service which has already attracted $100 million in assets. Gandham added:
“We’re putting together the internal processes. I feel if we dot the I’s and cross the t’s, we’re looking at Q4 to launch the OTC desk here in the UK. Some of our customers have said we want to do OTC trading. It will be an interesting part of the jigsaw puzzle that eToro is putting together.”
Over the counter trading and institutional custody accounts will allow for the great migration of institutional capital into the cryptocurrency market. The infrastructure has to be properly positioned to allow for the inflow of millions, if not billions, of dollars from traditional investment firms.
Gandham is the Chair of CryptoUK, a self-regulatory body assembled by leading crypto exchanges to develop appropriate regulation. He stated that the reports by this task force and the UK Treasury Select Committee will influence the UK regulations and that we should have regulatory clarity by the end of 2018. He said:
“The UK has no regulation. It’s quite opaque because you don’t know when regulations are going to move in. From a consumers perspective, because you don’t have clarity, you don’t know which companies to trust. Regulation will really help increase user adoption and decrease the risk. In China, people just moved onto other platforms like LocalBitcoin which are good but really, really risky. By de-risking the country, when they said we need to stop people selling cryptocurrencies, they’ve increased user risk.”
Gandham condemned the lack of regulation saying that directive lucidity will help “foster innovation and protect the consumer.” He called on the legislative bodies to provide clear guidelines, while not hindering the emerging market.