This move took some users by surprise, as ADA hasn’t exactly been on regulators’ radars lately.
eToro is going to scrap crypto currencies
In a statement sent to customers on Tuesday, crypto exchange eToro said it would cancel trading 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 or stake ADA and TRX. In addition, until the first quarter of 2022, wallets will only be able to be withdrawn and sales will be limited. In making the decision, eToro cited regulatory concerns surrounding both tokens.
The move came as a surprise to some. Since ADA is not traditionally associated with regulatory issues. Ripple, for example, is involved in an ongoing lawsuit with the Securities and Exchange Commission. As well as Monero, a privacy coin that some fear is being misused for illegal purposes. These coins are facing regulatory oversight in the crypto currency industry.
ADA has seen a rapid price increase this year and is currently in the top 10 cryptocurrencies by market capitalization. In the previous quarter, Cardano founder Charles Hoskinson announced a partnership with blockchain analytics provider Confirm. It did this to comply with regulatory frameworks, such as anti-money laundering guidelines. The move was criticized by some ADA supporters. They wanted the project to have a more decentralized character.
Companies operating in the blockchain industry are often heavily pressured by regulators when it comes to removing coins or disconnecting certain services. In September, Coinbase halted its crypto lending plans after the SEC threatened to sue the company. For now, the rise of decentralized exchanges and decentralized financing protocols have provided popular alternatives for those seeking to legally circumvent such crackdowns.
The news from eToro certainly didn’t do the ADA price any good. The Cardano price has fallen back to $1.66 which is the lowest point in 2 months.