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eToro Adds Insolvency Insurance Policy – Crypto Users Not Included
The free insurance scheme covers customers for up to £1 million if the firm should ever become insolvent. But crypto holders are left out in the cold.
Updated May 9, 2023, 3:13 a.m. Published Nov 2, 2020, 1:36 p.m.
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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.
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- 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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