eToro Set to Limit Cardano (ADA) For US Customers, Here’s How Hoskinson Reacted
eToro, a social trading platform that also offers support for crypto trading announced it will be limiting the liquidity for Cardano (ADA) and Tron (TRX) tokens for US customers fearing regulatory action. The official announcement noted that US customers would no longer be able to open any new positions for the two coins starting from December 26. The exchange platform would also discontinue staking services for both the tokens from December 30. The official announcement read,
“eToro will be limiting ADA and TRX for users in the US. These US users will no longer be able to open new positions in or receive staking rewards for, Cardano (ADA) and TRON (TRX). You will still be able to close existing positions as you see fit. These changes are due to business-related considerations in the evolving regulatory environment.”
The crypto community was surprised with the inclusion of Cardano, given the blockchain has been up and running without downtime. The altcoin also integrated smart contract support recently that propelled into a new era of decentralization. Some even blamed SEC for fearmongering among crypto platforms.
Hoskinson Responds to eToro Exclusion
Charles Hoskinson, the founder of Cardano blockchain was quick to respond to the eToro limitations and blamed it on the systemic lack of clarity in the global regulations.
Liquidity and Etoro https://t.co/X9sgPdpjgL— Charles Hoskinson (@IOHK_Charles) November 23, 2021
“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.”
Hoskinson also clarified that $ADA is still listed on the eToro platform and people outside the US can still trade the altcoin.
And we didn't even get delisted. Ada is still on etoro and non-US customers can freely trade https://t.co/FAcUgv9ERj— Charles Hoskinson (@IOHK_Charles) November 23, 2021
Many experts believe the recent eToro announcement is a direct result of the recently passed Infrastructure Bill that requires rigorous reporting for Proof-of-Stake tokens. Given the decentralized nature of the crypto market which is more prevalent in the Defi sector, it’s near impossible to keep track of traders and their investment.Source