On Tuesday, the Israel-based crypto exchange eToro released a customer statement announcing its decision to remove the two cryptocurrencies, ADA and TRX, from its listings for US customers.
As a result, US users will no longer be able to purchase these cryptos from December 26. They will also lose staking abilities for these tokens after December 31, 2021.
eToro Limits ADA Access For US
US wallets will be limited to withdrawals only until the first quarter of 2022. After that, even selling these tokens will be limited. Even though ADA has not traditionally faced much regulatory trouble, like Ripple or Monero, eToro has cited regulatory concerns behind this decision. According to an eToro representative,
“The regulatory landscape for crypto is evolving rapidly. As a result, we will be limiting the ability for US users to open new positions in, or earn staking rewards for, ADA and TRX. Above all, we are disappointed to take this step. eToro will continue to be active supporters of the crypto ecosystem."
However, nothing changes for the exchange’s customers based outside the US, as they can still freely trade in these cryptocurrencies on the platform.
Cardano Founder Reacts
Charles Hoskinson has never shied away from voicing his opinions against regulatory obstacles. Following the eToro announcement, he appeared on a live video broadcast to assure ADA investors and comment on the lack of clarity in crypto regulations on a global scale. Hoskinson claimed that ADA has more liquidity than most other cryptocurrencies in the space. He further clarified that Cardano has never received any regulatory summons or notice for its activities.
“Everything’s fine. Cardano is fine. Liquidity is improving – don’t allow people to spread fear, uncertainty, and disinformation. It’s just an example of thousands of independent businesses making decisions for their businesses, and some of those decisions are great for Cardano and some of those decisions aren’t.”
He also took to his Twitter handle to clarify that Cardano has not been delisted from eToro entirely, as non-US customers could still trade in ADA on the platform.
Hoskinson has been quite vocal about calling out the murky regulatory waters in the US. The recently passed Infrastructure Bill, which included a caveat pertaining to the crypto industry, had also irked his wrath for its problematic language. Hoskinson had openly called out the phrasing of the definition for the term ‘broker’ as mentioned in the bill.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.