TL;DR Breakdown
- eToro, an Israel-based exchange platform, has said it will limit the trading of Cardano and Tron in the US.
- Clients will experience trading difficulties with the two cryptocurrencies beginning December 2021.
eToro is banning us-based clients from trading Cardano and Tron through their site starting this December. The exchange platform claims that the US-based customers will miss these services due to the recent developments in regulatory issues.
The Israel-based exchange is one of the essential trading companies, and its recent announcement shocks the US Cardano and Tron holders. Their blog post said they would not allow US-based customers to continue trading their ADA and Tron cryptos beginning December 26. Per the announcement, the holders of these cryptos will not stake or open new positions in these assets.
eToro announces Cardano and Tron trading restrictions
The news from eToro comes as a shocker when Cardano is announcing an 11% weekly market recession. However, they said that their ban would only apply to new positions. Users will maintain their existing positions, but a payout will be in US dollars after closure.
They also added that they would convert the positions in smart portfolios into personal positions for owners to hold. The platform said that these measures were necessary as they face uncertainties due to the looming regulatory concerns in the US. Therefore, these steps are to protect them against possible regulations.
The news is causing an uproar among stakeholders. Charles Hoskinson, Cardano’s founder, said that regulation uncertainties are the crypto world’s main challenge.
He added that eToro is only acting this way individually to protect itself from regulations. Another announcement from Bitstamp confirm’s Hoskinson’s assertions by saying that it will list Cardano. Bitstamp’s announcement shows that eToro’s actions against Cardano are individual and not a symbol of global exclusion.
Hoskinson also said that the actions of eToro’s would not have significant effects on Cardano’s liquidity. According to him, there is a need for clarity in regulations since it is the only remedy for such issues. However, Justin Sun, the founder of Tron, said nothing regarding the matter.
Is the SEC about to dawn on cryptocurrencies?
The increasing regulation claims are the main concern for crypto exchanges currently. In the US, it mainly concerns stablecoins. But according to SEC chair Gary Gensler, some cryptos are also in the sum. Gensler said that some cryptocurrencies qualify to be securities and may not evade regulation.
Even though many cryptos do not fall in this category, the ones that do will have stricter regulations like stocks. One of the recent skirmishes between SEC and cryptos is a lawsuit against Ripple’s XRP. They argue that it is a crypto-security, but the crypto owners say that they never got any warning from the SEC regarding that matter. As a result, they blame the organization for regulation uncertainties.
Now, such a sense of regulatory confusion is evident through actions like eToro’s. Many are now in between speculations and worry, which is the case for the recent eToro’s Cardano and Tron delisting.
