Etoro Delisting ALGO, DASH, MATIC and MANA for US Customers
The social trading and investment company Etoro makes the decision to delist ALGO, MANA, DASH, and MATIC for US customers so that they cannot start doing new trade. The platform comes up with this decision paying attention to the rapidly evolving regulatory landscape in the United States.
It is clearly mentioned that this decision is only applicable to US customers which will be effective on July 12, 2023. From July 12, US customers cannot take a new entry to trade in algorand (ALGO), decentraland (MANA), dash (DASH), and polygon (MATIC). They can hold their crypto and sell it later. Etoro is not the only trading platform to make such decisions.
Crypto and stock trading platform Robinhood made the same decision to delist Cardano (ADA), Polygon (MATIC), and Solana (SOL). Crypto.com suspends its US institutional exchange service that is going to be effective on June 21. This is not a coincidence that trading platforms dealing with crypto trading make similar moves.
The U.S. Securities and Exchange Commission (SEC) has made its harsh move to sue the largest crypto exchange Binance, Binance CEO Changpeng Zhao, CZ, and Binance US. The next day the SEC filed a lawsuit against the popular crypto exchange Coinbase. In both lawsuits, some cryptocurrencies are mentioned as securities, and crypto exchanges are in trouble now.
Seeing the SEC's move and current challenging situations in the market, Etoro makes its choice to be on the safe side like Robinhood and crypto.com. Without regulatory clarity, trading platforms remain in the dark about which crypto assets are securities and which are not.
In spite of seeking guidelines and regulatory clarity, crypto businesses fail to get that from regulatory agencies. It feels like playing hide and seek game, when something is revealed like which cryptos are securities, trading platforms quickly act based on that to stay safe. In case the crypto platform is sued by the SEC, that's bad luck because they did not have the time to react, now they have to deal with it in court.
Etoro wants to work with regulators around the world and give a safe environment for investors to make investments. Many crypto businesses are committed to following regulatory guidelines and rules. It should be crypto-friendly to support development and innovation in the crypto industry.
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