eToro Limits Access to Popular Crypto Tokens for US Traders
On Monday, eToro, a financial trading platform, announced that starting next month, its U.S. customers will no longer be able to purchase Algorand (ALGO), Decentraland (MANA), Dash (DASH), and Polygon (MATIC).
This decision comes in response to regulatory actions taken by the Securities and Exchange Commission (SEC), which have significantly impacted the financial services industry.
Among the 24 tokens listed on eToro’s U.S.-facing crypto platform, the SEC classified these tokens as securities following high-profile lawsuits against major crypto exchanges Coinbase and Binance.
From 6:00AM ET on Wednesday July 12th, 2023, US customers will no longer be able to open new positions in Algorand (ALGO), Decentraland (MANA), Dash (DASH) and Polygon (MATIC). Customers can continue to hold and sell existing positions in these coins. (2/5)
— eToro US (@eToroUS) June 12, 2023
The changes will be implemented on July 12, giving U.S. customers a one-month window to trade the affected tokens. While the spokesperson did not explicitly mention the SEC lawsuits, they did acknowledge the evolving regulatory landscape and recent developments that necessitated adjustments to eToro’s crypto offerings for U.S. customers.
It is important to note that these changes only impact U.S. customers of eToro, as the platform operates in over 100 markets globally. eToro emphasized its ongoing commitment to cryptocurrency on Twitter.
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eToro’s decision, effective June 27, to discontinue support for these tokens have been attributed to the prevailing uncertainty surrounding their regulatory status.
eToro and Robinhood share similarities in their progression from offering traditional assets such as stocks to expanding into cryptocurrencies. Both platforms began providing U.S. customers access to assets like Bitcoin and Ethereum in 2018.
While the SEC has displayed a regulatory stance against crypto companies that allegedly failed to comply with regulations, eToro and Robinhood are examples of firms originating from different industries experiencing the impact of the cryptocurrency market’s regulatory environment.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
