Crypto Regulation: eToro To Delist Cardano, Tron For US Clients By 2022
Increasing cryptocurrency regulatory issues are forcing crypto exchanges around the world to make decisions that may impact the general crypto market in the future. As more people become crypto literate in the US, they may find themselves being short of crypto options to invest in if the regulatory situation continues.
eToro, one of the popular crypto trading platforms, has announced that it would delist two popular cryptocurrencies, Tron (TRX) and Cardano (ADA) from its list of staking assets by December 31, 2021. With effect from December 26, 2022, traders on eToro will not be able to trade TRON and ADA in any digital token pair.
Users who staked any of the affected tokens will receive their payouts by January 15, 2022. The payouts will be made in US Dollars. But according to eToro, traders who leave their trades running will not be forced to close them. Whenever they choose their trades, eToro said, their earnings will be paid in US dollars.
Traders on eToro who have trades open in their automated Smart Portfolio accounts will have those trades transferred to their manual personal account where they can either choose to close or leave the trades running. eToro has said that it would however continue to support both assets long after closing trades on them.
eToro’s Decision Caused By Regulatory Issues
In its announcement, eToro noted that it was making the decision to delist both TRON and ADA due to what it explained as business-based decisions triggered by the growing crypto regulatory situations. Concerns about crypto regulation have grown in recent months and the major exchanges are alert to possible changes that can affect the tokens listed on their platforms.
eToro’s decision is however surprising to many analysts and traders who feel that since Cardano has not been targeted by regulators, there is no need for the Israeli social trading exchange to delist the token. Their surprise has only been increased by eToro’s decision to place wallets on a withdrawal-only notice until 2022 Q1.
In the US, where eToro is delisting both Tron and Cardano, the Securities and Exchange Commission has not spoken or referred to both tokens in any of its statements or regulatory processes. Only Ripple (XRP) and Monero are facing legal battles from the SEC. The outcomes of both cases are highly anticipated within the crypto community as they would become precedents.
Growing Crypto Regulations
Just yesterday, news broke that the Indian government may ban nearly all cryptocurrencies. India is about to join a growing number of countries that are banning cryptocurrencies to pave the way for their central bank digital currencies (CBDCs). China led the way when it banned cryptos in September before launching its Digital Yuan.
Crypto regulation is one of the most talked-about topics in the financial and legal worlds today. The World Economic Forum (WEF) released a number of white papers on Monday that discussed the potential benefits, risks, and challenges of cryptocurrencies. The white paper also contained a working framework that the WEF said countries can adopt to make the crypto industry safer for consumers.
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