eToro, one of the biggest cryptocurrency trading platforms, has announced that it would stop supporting trades on two of its popular digital assets as of December. eToro is doing this because of a crypto regulation concern that they feel could impact their exchange platform. The action will be limited to the traders from the US though; traders elsewhere can still trade the cryptocurrencies.
eToro will delist Cardano (ADA) and Tron (TRX) in 2022 and as from December 31, will prevent US traders from opening new trades on both tokens. Traders would however have the choice of closing their running trades on both assets or leave the trades running. eToro would also close staking on both ADA and TRX for US traders at the same time.
The crypto exchange firm said that investors will be paid their staking profits in USD and also traders will receive the profits from their trades in the same currency. Traders that have running trades on eToro’s automated trading platform will have the choice to either end the trade or keep them running. The animated trades will be transferred to the manual accounts of traders.
Traders Say is Surprising News
eToro’s decision to delist both ADA and TRX at the same time comes as a huge surprise to its users. Other crypto exchanges in the US and elsewhere have not delisted ADA and TRX and given eToro’s citing of regulatory concerns as the reason why it will no longer support both tokens, the surprise becomes stronger.
In the US, only XRP and Monero are facing legal battles from the SEC following its allegations of misconduct. But ADA and TRX have not been mentioned in any misconduct in the U. both tokens are receiving increased interest from US crypto traders. More surprising is the fact that no regulatory body in the US has issued a warning or threat to the Israeli crypto exchange, eToro.
If that had happened, US traders could have alluded to that for being the reason for delisting the assets. For example, the SEC recently threatened legal cases against Coinbase, the largest crypto exchange in the US. Coinbase planned to launch a lending platform which the SEC is against. That threat led to Coinbase putting the project on hold.
Concerns For Crypto Regulation in the US
Cardano recently announced a partnership with Confirm to become regulatory compliant. The partnership would help Cardano to streamline all of its operations with anti-money laundering laws in the US. Although Cardano’s officials did not mention it, the move could be as a result of an increasing pressure from the regulatory agencies for crypto firms to become compliant with regulations.
Last month, the President’s Working Group released a dozen recommendations that it said would help create a framework for crypto regulations in the US. President Joe Biden also recently signed a law that requires senders of crypto assets worth over $10,000 to declare their identities.
No one can say for sure what regulations will be placed on the crypto industry, but crypto looks here to stay.