eToro Germany has announced that the custody of eToro clients' crypto assets in Germany will be handled by Tangany GmbH.

Tangany is a Munich-based cryptocurrency custody provider regulated by the German Federal Financial Supervisory Authority (BaFin).

"As of January 21, 2024, all cryptoassets held by eToro Germany will be transferred to the custody of Tangany, and eToro Germany will no longer provide cryptoasset custody services," the broker said in a statement.

Following the transfer of cryptoassets to Tangany, eToro clients in Germany will still be able to sell or transfer their cryptoassets to another custodian through the broker's platform.

At the same time, the broker notes that transferring cryptoassets to another custodian will close access to selling them through the eToro platform.

All those who do not wish to use Tangany's custodial services can either sell their crypto assets through the eToro platform until January 21, 2024, or transfer them to an external wallet through the eToro wallet until January 15, 2024.

The asset transfer process will begin on January 21, 2024, and continue until January 29, 2024. During this period, users will not be able to dispose of their crypto assets.

The broker also said that due to technical reasons, NEO, FIL, THETA, and LUNA cryptoassets will not be able to be transferred.

"If you hold cryptoassets in these four currencies, you can sell them or close your positions until January 20, 2024, 23:59 CET (Central European Time). Otherwise, even without your consent, these cryptoassets will be sold at market value after the aforementioned date, and the proceeds will be credited to your eToro account. You will be charged the standard fee for this sale," broker said in a message.

eToro is also offering to convert (M)IOTA into Wrapped IOTA in the Binance Smart Chain to be transferred to Tangani for safekeeping.

"If you agree to this, you don't need to do anything else. However, if you do not want this conversion, we ask you to sell your (M)IOTA by January 20, 2024, 23:59 CET," eToro said.

eToro will be working with an independent partner in Germany that will provide custodial services for cryptoassets in accordance with the legal requirements of January 21, 2024.

In order for Tangany to fully provide custodial services to a user, they will need to accept the company's terms and conditions. Tangany may also be asked to provide and/or update certain personal information so that an individual can be verified.

However, until the user accepts Tangany's terms and conditions, they will not be able to transfer their crypto assets to external wallets once they have been transferred to Tangany.