Key Insights
- eToro will stop offering long non-leveraged crypto CFD products to Australian customers from February 19, 2024.
- Existing open positions will be automatically closed on that date. Customers can switch to “real” crypto assets before then to avoid this.
- eToro will reimburse intraday spread costs for customers who switch to real crypto assets, up to their original trade size.
SYDNEY (MarketsXplora) – Global online trading platform eToro said on Thursday it will stop offering long non-leveraged contract-for-difference (CFD) cryptocurrency products to customers in Australia from Feb. 19 2024.
Instead, the company will shift users to “real” cryptocurrency assets, which are direct holdings registered on blockchain rather than a derivatives contract with the brokerage.
In an email to clients seen by MarketsXplora, eToro said it will automatically close any remaining open non-leveraged crypto CFD positions on Feb. 19 and reimburse customers for intraday spread costs if they switch to real crypto assets.
From February 19, 2024, eToro will no longer support long non-leveraged CFD crypto positions in Australia,” the company said in the email.
In case you want to close your non-leveraged long CFD cryptoasset positions before February 19, 2024, you may proceed and open an equivalent position in real crypto.
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The shift comes as regulators globally tighten rules around crypto CFDs amid worries novice investors could suffer large losses without understanding the risks.
Australia has been at the forefront of cracking down on crypto derivatives and last year banned crypto CFDs altogether for retail customers.
eToro said real crypto assets, which give investors direct ownership registered on blockchain, are unregulated products that carry no investor protections.
The company warned the shift may have tax implications for Australian customers.
Founded in 2007, eToro says it has over 27 million registered users globally who can manually invest in assets or copy the trades of other users on the platform.