Leading retail trading platform eToro has announced a temporary halt on the purchase of four cryptocurrencies, Algorand (ALGO), Decentraland (MANA), Polygon (MATIC), and Dash (DASH), for its customers in the United States. The decision comes in response to recent lawsuits by the United States Securities and Exchange Commission (SEC) that label these tokens as securities. eToro emphasizes that it remains a supporter of the crypto sector but is taking precautionary measures to ensure compliance with evolving regulatory requirements.
eToro Reacts to Regulatory Uncertainty, Halts Support for ALGO, MANA, MATIC, and DASH
In response to the SEC’s lawsuits labeling ALGO, MANA, MATIC, and DASH as securities, eToro has decided to temporarily halt purchases of these cryptocurrencies for its US customers. The move aims to ensure compliance with regulatory standards and avoid potential non-compliance issues. eToro US states that while the assets have been delisted, users can still hold and sell them.
The decision follows similar actions taken by other platforms, with Robinhood recently halting support for MATIC and Cardano (ADA), two additional cryptocurrencies mentioned in the SEC lawsuits. The regulatory landscape surrounding cryptocurrencies is evolving rapidly, and eToro has decided to proactively address these developments.
eToro’s Commitment to Diversified Asset Classes and Collaboration with Regulators
eToro US reaffirms its commitment to supporting a diversified range of asset classes, including cryptocurrencies, stocks, ETFs, and options. The platform emphasizes the importance of offering users access to various investment opportunities while working closely with regulators to shape the future of the crypto industry.
The decision to temporarily halt the purchase of ALGO, MANA, MATIC, and DASH underscores eToro’s dedication to regulatory compliance. By taking a cautious approach, the platform aims to ensure that ordinary investors can continue to access and trade digital assets in a legally compliant manner. The company recognizes the significance of collaboration between the crypto industry and regulatory bodies in promoting a secure and inclusive investment environment.
eToro’s Previous Actions in Response to Regulatory Challenges
This recent move by eToro is not the first time the platform has adjusted its offerings in response to regulatory challenges. In December 2020, eToro delisted Ripple‘s XRP following the SEC’s lawsuit against Ripple Labs. The decision to halt XRP trading was prompted by concerns surrounding the legal status of the token as determined by the SEC.
It’s worth noting that eToro’s decision to halt purchases of ALGO, MANA, MATIC, and DASH should not be mistaken as a permanent withdrawal of support for these cryptocurrencies. The platform remains committed to the crypto sector and aims to resume full support for these assets once regulatory uncertainties are clarified.
Conclusion
eToro, a prominent retail trading platform, has temporarily suspended the purchase of Algorand (ALGO), Decentraland (MANA), Polygon (MATIC), and Dash (DASH) for its US customers. The decision is a response to recent lawsuits by the SEC, which label these cryptocurrencies as securities. The platform emphasizes its support for the crypto sector and states that the move is a precautionary measure to ensure compliance with evolving regulatory requirements. The platform remains committed to working closely with regulators to shape the future of the crypto industry and provide access to a diverse range of asset classes for ordinary investors.
