In a new twist of events, Israeli trading entity eToro has decided to remove Cardano [ADA] and Tron [TRX] from its platform for US users, by the end of this year. According to the press release, the latest announcement meant that customers in the US would be unable to open new positions or collect staking rewards with regards to the two native tokens. However, the trading firm specified that it will facilitate users to close existing positions, they deemed fit.
With regards to the dates, the blog post revealed that the aforementioned delisting of ADA or TRX positions will commence from December 26, 2021. Along with that, staking for those crypto assets will close by 31st December. The trading entity said the decision to delist from its exchange was taken considering the current unfolding events in the regulatory environment.
The move raised eyebrows especially in the case of layer one blockchain Cardano which did not appear to be under the prying eyes of the regulatory bodies. In fact, a few months ago, Charles Hoskinson of Cardano joined hands with an analytics provider Coinfirm to ensure compliance with regulatory guidelines such as Anti-Money Laundering rules [AML] and Financial Action Task Force [FATF] recommendations. On the price front, ADA too has witnessed a steady surge and is currently the 6th biggest by market capitalization.
Crypto-Trading Firms under the radar
Lately, firms operating in the crypto industry have come under intense scrutiny from regulatory agencies in terms of delisting coins or terminating certain services. Earlier in September, Crypto exchange platform, Coinbase decided to pull the plug on its future lending project after the Security and Exchange [SEC] issued a warning to take legal action. Another case is the Ripple Vs SEC where the blockchain firm has been accused of selling $1.3 billion worth of the crypto asset XRP in unregistered securities offerings. Similarly, Privacy coin Monero is also facing the heat due to rising concern of being misused for illicit activities.
Nevertheless, the burgeoning growth of decentralized exchanges [DEX] and decentralized finance [DeFi] protocols have provided popular alternatives for those seeking to legally avoid such clampdowns.