In a statement released to customers on Tuesday, Israeli crypto exchange eToro announced that it will remove Cardano (ADA) and Tron (TRX) for US customers by the end of the year.
After December 31, US users will not be able to open new positions with tokens or place bets on ADA and TRX. In addition, portfolios will be in drawdown mode until the first quarter of 2022, when sales will also be limited. When eToro made its decision, eToro cited regulatory concerns about both assets.
The move came as a surprise to some because the ADA has traditionally not been associated with regulatory issues. In this context, tokens such as Ripple (XRP), whose creators are currently involved in an ongoing lawsuit with the Securities and Exchange Commission or the SEC, as well as Monero, a privacy currency that can be easily abused by some. Illegal targets. In the cryptocurrency industry, it is subject to major scrutiny from regulatory bodies.
ADA prices have skyrocketed this year and are currently in the top 10 cryptocurrencies by market capitalization. During the last quarter, Charles Hoskinson, the founder of Cardano, announced a partnership with a blockchain analytics provider that focuses on regulatory compliance such as anti-money laundering directives. The move was criticized by some ADA supporters who wanted the project to be more decentralized.
Companies in the blockchain industry are often under intense pressure from regulators when it comes to minting coins or shutting down certain services. In September, Coinbase scrapped plans to create a crypto lending platform after the Securities and Exchange Commission threatened to sue the company. But nowadays, the rise of decentralized exchanges and decentralized financial protocols has provided popular alternatives for those wishing to legally circumvent such interference.