eToro delisting Cardano and Tron by 2022 for US users

eToro, a famous Israeli crypto exchange platform, plans to discontinue opening of new positions for Cardano and Tron due to regulations
eToro, a famous Israeli crypto exchange platform, plans to discontinue opening of new positions for Cardano and Tron due to regulations

eToro, a famous Israeli crypto exchange platform, released a statement to its users on November 23 stating that it would delist Cardano (ADA) and Tron (TRX) for US customers from the start of 2022.

eToro users in the United States would no longer be allowed to open new positions or stake ADA and TRX after December 31. Wallets will likewise be in withdrawal-only mode until the first quarter of 2022, but users can sell their TRX and ADA in limited quantities. eToro said that it made the decision based on regulatory concerns around both the tokens.

Many are surprised by the move because the ADA has never been involved with any kind of regulatory issues. In the crypto market, coins like Monero, a privacy coin that some believe can be readily abused for criminal purposes, and Ripple (XRP), whose founders are currently involved in the XRP lawsuit with the Securities and Exchange Commission (SEC), are facing continuous regulatory scrutiny.

This year, the price of Cardano has risen rapidly, and it now placed itself among the top ten cryptocurrencies in terms of market value. 

Cardano trying to comply with regulatory structures

Charles Hoskinson, the founder of Cardano, during the previous quarter, announced partnerships with Chainlink and Dish Network, along with blockchain analytics provider, Confirm, to comply with regulatory guidelines, including anti-money laundering (AML) directives. Many “Ethereum-killer” supporters criticized the decision, arguing that the project should be more decentralized.

When it comes to removing coins or shutting down particular services, regulators put a lot of pressure on companies in the blockchain industry. Coinbase dropped its plans for a crypto lending business in September after the Securities and Exchange Commission threatened to sue the company.

For the time being, however, the development of cryptocurrency exchanges and decentralized financial protocols have offered popular alternatives for individuals seeking to circumvent such constraints lawfully.

Before this, as TheCoinRise reported, crypto exchange giant Binance stopped its crypto offerings in South Africa and also revealed that around 3% of users left the platform after making KYC verification mandatory.