In a statement released to customers on Tuesday, the Israeli cryptocurrency exchange eToro announced that it will remove US customers from Cardano (ADA) and Tron (TRX) by the end of the year.
After December 31, US users will not be able to open new positions in ADA and TRX tokens. In addition, wallets will in fact only be withdrawn until the first quarter of 2022, when sales will also be limited. When eToro made the decision, eToro referred to regulatory concerns regarding both assets.
The move came as a surprise to some, as 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, are a privacy currency that some fear could easily be exploited for illegal purposes. facing a problem. the bulk of regulatory oversight in the cryptocurrency industry.
ADA prices have skyrocketed this year and are currently among the top 10 cryptocurrencies by market value. Last quarter, Cardano founder Charles Hoskinson announced a partnership with a blockchain analytics provider that has confirmed compliance with regulatory requirements 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 removing coins from the list or shutting down certain services. In September, Coinbase shelved plans to create a crypto-loan platform after the Securities and Exchange Commission threatened to sue the company. But today, the rise of decentralized exchanges and decentralized financial protocols has provided popular alternatives for those who want to get around such strict legal procedures.