Accountmanager Etoro info 29-12-2020
Just spoke to my account manager. He said that there is a reason Etoro send out that announcement and that we should not get our hopes up that they will reach a settlement with DNB before Jan 23rd. Please don't pull out your red before that time. Instead let them do it and we will figure out a way to file for class lawsuit somehow.
Thank you for the input Beeerza, I am still waiting for my account manager to get back to me, but I think I can tell based on the response you got what his answer will be. Whatever I have in crypto now, mainly XRP and véry red, I will indeed keep until 23/01/21.
I received the following:
eToro is not liable to compensate clients based on clients realizing losses due to complying with regulatory law.
A potential way to continue the same exposure (not financial advice) would be to open identical cryptocurrency positions if possible on another platform/exchange elsewhere at exact time of closing positions on eToro.
Should you require further assistance or information, please reply to this message.
eToro Customer Service
according to their own rules we own the underlying asset so why can`t etoro just close our accounts and send our assets to a wallet ?
On eToro, some positions are secured with real assets, and others use CFDs.
The type of crypto position depends on the direction of the trade (BUY or SELL), use of leverage, and the regulation that is applicable to you. To find out which regulation your account is under, please click here.
For clients of eToro (Europe) Ltd:
I'm also waiting for my eToro account manager to respond but I don't expect much from him.
Some interesting things I found in their T&Cs https://1mr3lc1zt3xi1fzits1il485-wpengine.netdna-ssl.com/wp-content/uploads/2020/11/eToro-EU-Terms-and-Conditions-German-crypto-and-set-off-updates-30.11.2020.docx.pdf
4.2 The eToro trading platform is not an exchange or a market. This means that:
(a) you can only enter into trades and investments with us on the platform, and not third parties;
(b) all trades opened on our platform must be closed on our platform;
(c) all products which you purchase on our platform can only be sold on our platform, and not a third party platform;
(d) you will generally not be able to transfer products into your eToro account, out of your eToro account or to a third party at any time. However, we reserve the right to permit and support this functionality at our discretion, including, for example, the ability for you to transfer certain products between your eToro account and electronic wallets operate by an eToro Europe affiliate; and
8. How your money is protected
8.1 eToro Europe is covered by the Cyprus Investor Compensation Fund ("Fund"). If we fail, the Fund can return your money up to €20,000 or as may be updated from time to time. For more information about the Fund, visit our website at https://www.etoro.com/customer-service/regulation-license/ and https://www.cysec.gov.cy/en-GB/complaints/tae/.
8.2 Importantly, the Fund protection is only applicable to regulated products. This means that any cryptoasset trades, including cryptoasset copy trades, are not protected, but security trades and security copy trades, and CFD trades and CFD copy trades, are protected.
9. How you can make a complaint
9.1 If you are unhappy with a Service or something has gone wrong, please contact us and we will try to put it right. You may contact us directly via: (a) the "Help" section of our platform, where you will also find our complaints procedure; or (b) the customer service section of our website at https://www.etoro.com/customer-service/.
9.2 For more information on our complaints handling procedure, please visit our website at https://www.etoro.com/customer-service/regulation-license/.
9.3 If you're still not happy with how we've dealt with your complaint, you can refer it to the Financial Ombudsman of the Republic of Cyprus or to the CySEC or to relevant courts. For more information on such alternative solutions, please refer to our complaints handling procedure.
If according to eToro, crypto assets are real (secured) assets that we own, they should allow us to transfer them to the eToro wallet and from there to alternative wallets. They, DNB or financial authorities can still trace the movement of coins using blockchain addresses as none of the crypto assets on eToro are privacy coins so I don't see why they should block access to the wallets.