Etoro, an Israel trading platform has initiated action regarding trading cardano/tron on its platform. Starting in December, U.S.-based clients will only be able to access these cryptocurrencies through the Etoro platform. Etoro explained in a post that these new measures were a consequence of “business-related considerations in the evolving regulatory environment.”
Etoro limits Tron trading and Cardano trading for US customers
Etoro is one of Israel’s most prominent trading firms. They have limited the trading options for U.S. residents. This announcement was made in a blog posting on November 23. It informed users about the restrictions that will be applied to these assets. These cryptocurrencies will be unavailable for purchase starting on December 26. Users won’t be allowed to place any positions and they will be removed from the market starting next December 21.
This applies only to newly created positions. The users will need to maintain existing positions, but the payout (if any), will be done in dollars. Smart portfolio positions will also be turned into individual positions to allow the user to continue to hold them. Etoro stated it is taking these measures due to “business-related considerations in the evolving regulatory environment.” The company is likely trying to protect itself from the regulatory uncertainty that the cryptocurrency sector is facing in the U.S.
Etoro’s unexpected actions prompted an a responseCharles Hoskinson is the Cardano founder. Hoskinson discussed the regulatory uncertainty that cryptocurrency is facing in general, particularly in the U.S.
The liquidity of the US was decreased because it appears that this is an adjustment to risk control policy and policy in relation to a specific European entity.
Bitstamp is a European crypto exchange that has made it clear that cardano will soon be available on their platform. This would support the aforementioned assessment by Hoskinson, which suggests Etoro’s constriction is just a specific action by a single platform, and not symbolic of an overall trend of exclusion. Hoskinson also clarified the action by Etoro wouldn’t affect the liquidity of the currency in the market, as it was a relatively small platform for the token.
Hoskinson asked for clarity in regulatory matters, declaring that it would be the only solution to all problems. Justin Sun (the founder of Tron) did not make any statements on the matter.
How do you feel about Etoro’s decision to limit Tron and Cardano functionality on its platform. Comment below.
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