Cryptocurrency exchange eToro has become the latest platform to take steps towards the latest altcoin regulations. eToro announced that they have made a delist decision for several cryptos. Here are the details…
eToro delists some altcoin projects
In response to the “rapidly evolving regulatory environment,” popular brokerage firm eToro has announced that it will stop US clients from trading four cryptocurrency tokens classified as new securities by the Securities and Exchange Commission (SEC). The move follows recent SEC lawsuits against major cryptocurrency exchanges Binance and Coinbase, where the four tokens were mentioned in various capacities.
From 6:00AM ET on Wednesday July 12th, 2023, US customers will no longer be able to open new positions in Algorand (ALGO), Decentraland (MANA), Dash (DASH) and Polygon (MATIC). Customers can continue to hold and sell existing positions in these coins. (2/5)
— eToro US (@eToroUS) June 12, 2023
The cryptocurrencies affected by eToro’s decision are Algorand (ALGO), Decentraland (MANA), Polygon (MATIC) and Dash (DASH). On Wednesday, July 12, 2023, US customers will no longer be able to open new positions in these tokens on the eToro platform. However, existing holders will be able to continue to sell their positions. eToro highlighted its commitment to review the crypto assets it offers in light of regulatory changes. The brokerage firm recognized the importance of providing access to a diversified range of asset classes for its users, which includes stocks, ETFs and options. It then cut support for the four tokens in question.
However, eToro assured its clients that it remains a supporter of crypto assets and plans to work closely with regulators around the world to shape the future of the industry and advocate for access for ordinary investors. It should be noted that these changes only apply to eToro’s customers in the USA. The decision to remove support for Cardano (ADA) for US customers was made in December 2021 due to “business considerations”.
Robinhood had also delisted
eToro’s move comes after Robinhood, another popular trading platform, removed ADA, MATIC, and Solana (SOL) from its platform. The SEC acknowledged that each of these tokens meets the criteria for classification as a security. Binance.US also halted several trading pairs last week, including ATOM/BTC and MANA/BTC, possibly as a result of regulatory pressures.
In response, Coinbase CEO Brian Armstrong recently stated that his company does not plan to delist any of the tokens it calls securities in the SEC’s lawsuit. As Cryptokoin.com reported, the tokens mentioned in the lawsuit include SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH and NEXO.
The measures taken by eToro and other platforms reflect the increasing scrutiny and regulation of the cryptocurrency industry by regulatory bodies such as the SEC. As regulators continue to navigate this evolving landscape, it remains to be seen how these developments will affect the usability and trading of various cryptocurrencies in the US market.
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