Investment and trading platform eToro has announced that it will delist Cardano (ADA) and Tron (TRX) for US users.
From December 26, 2021, Users will not be able to open new positions in these altcoins. On January 15th, 2022, eToro will stop paying Cardano and Tron staking rewards to US customers and staked coins will be settled in USD.
According to eToro, the decision was made because of “business considerations in an evolving regulatory environment.”
eToro American users will be able to hold existing positions in Cardano and Tron but in the first quarter of 2022, eToro will close all kinds of activities related to these two coins.
The company said in a statement:
“We continue to offer a wide range of crypto assets on eToro and look forward to adding more in the future.
“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 not happy to take this step, eToro will continue to be a strong supporter of the cryptocurrency ecosystem.”
Charles Hoskinson, the founder of Cardano was fast to reply to the latest move. He made a video discussing the drop by eToro.
“So there are no issues on our side. We’ve never received any regulatory summons or subpoena[s] or any of these things. 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.
It’s not a trend of anything significant. It just seems an adjustment of the risks and controls of the policy of a particular European entity, and liquidity got clipped there for US participants. However, another exchange that is larger, right at the same time – Bitstamp – listed ADA. It’s under the same regulatory structure as the others, and they have US customers.”
Liquidity and Etoro https://t.co/X9sgPdpjgL
— Charles Hoskinson (@IOHK_Charles) November 23, 2021