The SEC continues its attacks on cryptocurrency trading platforms; find out how eToro is forced to delist four cryptocurrencies, including ALGO, MANA, Dash and MATIC, for its US customers. A decision that reflects the growing tensions between regulators and the crypto community.”
In the regulatory maze: eToro forced to delist cryptocurrencies for its US customers
There’s a new casualty in the ongoing battle between the Securities and Exchange Commission (SEC) and major players in the cryptocurrency world. eToro, the renowned trading platform, has reluctantly announced that it will no longer be able to offer certain cryptocurrencies to its US customers. The decision has sent shockwaves through the crypto community, leaving traders wondering which crypto currencies are affected.
eToro, the latest victim!
The verdict is in: ALGO (Algorand), MANA (Decentraland), Dash and MATIC (Polygon) are now out of reach for American eToro users. A perplexing announcement, but one that comes with a clear deadline: July 12 will mark the end of the possibility of opening positions on these assets.
In its terse statement, eToro cites an “ever-changing regulatory environment” as the reason for this abrupt decision. The four cryptocurrencies cited were directly mentioned in the SEC’s actions, which consider them to be “securities” subject to its jurisdiction. Yet eToro did not delist all the crypto-currencies concerned, without providing any explanation for this selective choice.
Despite this difficult decision, eToro is keen to emphasize its commitment to crypto-assets. The platform firmly affirms its determination to continue supporting these digital assets and to offer its users access to a diversity of asset classes. It also states its determination to work closely with regulators worldwide to find solutions that will satisfy all stakeholders.
However, this announcement by delistage highlights the climate of uncertainty that has reigned within the crypto community since the SEC stepped up its campaign against the major exchange platforms. Traders are wondering how much this regulatory hostility will continue to weigh on the industry, and whether other platforms will also be affected.
What’s more, this decision to delist these specific cryptocurrencies only deepens the divide between users. Those residing outside the US will not be affected by these restrictions. So it seems that the flight of crypto businesses and capital to more crypto-friendly territories has already begun. Indeed, over $4 billion worth of cryptocurrencies have already been transferred out of the coffers of US exchanges, to destinations with more relaxed regulations.
In this battle between regulators and crypto players, eToro is now the latest victim. The question on the lips of many observers is how far this regulatory war will go, and what impact it will have on the future of cryptos and financial innovation.