eToro announced today that two cryptos will be removed from their platform. The regulatory burden is growing and crypto exchanges find themselves carrying the majority of this weight. They have to make sure that they do not become the ones who are being penalized. To maintain regulatory compliance, this has resulted in the delisting of crypto currencies from cryptocurrency exchanges.
eToro is the latest exchange to be affected by regulatory issues. Tuesday’s blog posting by eToro announced that the exchange would delist community favorites Tron and Cardano. A number of emails were sent out to crypto exchange users informing them about the most recent developments.
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eToro limits access for US users
The announcement states that the main user base of delisting the coins will come from the United States. eToro will limit access to digital assets to users within the United States in a multi-stage delisting. This is expected to take place on December 26, 2021.
This first phase will prevent US users from opening new jobs in Tron (TRX) or Cardano (ADA). Although users can still close positions they have closed, new positions will not be permitted to be opened. eToro will remove stakes features for US users of Cardano and Trong, with the final rewards payouts occurring on January 15th 2022.
Source: ADAUSD on TradingView.com| Source: ADAUSD on TradingView.com
The statement cited the “evolving regulatory environment” as the reason behind the delistings. This is consistent with Kraken’s decision to delist privacy coin Monero from its UK users. It also raised regulatory concerns about the move.
This will affect TRX holders and ADA Holders.
In the blog, it was explained that Tron (TRX), Cardano (ADA), and Tron holders would still be able hold the assets of the exchange after the delisting. Additionally, their USD positions will still be available for sale. The expiry date for this is also stated in that they will be able to sell their positions for USD.
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eToro converts Smart Portfolios that have either one or both these assets into open positions. Users can then choose to close or hold them. Portfolios copied by others may be affected. The assets of the copying portfolio may also be sold if they sell their Tron (TRX), Cardano(ADA) and Trons (TRX).
Last but not least, users can still send their holdings via eToro Money’s crypto wallet beyond the expiration date. They will also be able sell their holdings without being forced.
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