Cryptocurrencies

eToro Adds Insolvency Insurance Policy – Crypto Users Not Included

(CoinDesk archives)

Investment platform eToro is now providing a free insurance scheme that will pay its customers holding traditional assets up to £1 million ($1.292 million) if the firm should ever become insolvent. 

  • In an emailed announcement on Monday, eToro said the new policy is underwritten by Lloyd’s of London and would apply in “the unlikely event that eToro were to enter a state of insolvency.”
  • If it goes bust, the firm said the policy would “cover clients for losses above the relevant financial compensation schemes to a value of £1 million, and in accordance with the purchased policy.”
  • In the U.K., the Financial Services Compensation Scheme would cover up to £85,000 (around $110,000) held in investments.
  • The policy also covers both cash held on eToro’s platform and open accounts but cryptocurrencies are not included because they are “unregulated assets,” the firm stated.
  • eToro said the insurance would bring its millions of global users “additional peace of mind.”

Also read: Bitstamp Adds Crypto Crime Insurance for Assets Held Online

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