eToro has also promised its customers an upgrade that will enable the storage of ADA or TRX assets in eToro’s money crypto wallet.
In a recent statement published on eToro‘s website, the company has disallowed the opening of any new positions in Cardano (ADA) and TRON (TRX) digital tokens in the United States. The announcement was made on November 23rd on the Israeli company’s website. eToro’s move to limit ADA and TRX tokens for customers will also disallow US users to accept staking rewards for Cardano and TRON.
The decision will come into effect from December 26, 2021, while the staking for both the tokens will be put to a halt on December 31, 2021. According to the official claims by the company, the modifications are made because of the ‘business-related’ events in the regulatory ecosystem.
While possessing already existing positions of Cardano and TRON is allowed, the users won’t be able to acquire newer positions. The user will, however, be able to sell tokens, or simply close tokens to receive money in exchange. The concluding reward rollout will be provided to users and subscribers on Jan 15th, 2022.
eToro has also promised its customers an upgrade that will enable the storage of ADA or TRX assets in eToro’s money crypto wallet. The upgrade is touted to reach the public by 2022. However, if the user has engaged in investments in a Smart Portfolio that involves these assets, they will be transformed into open positions in the user’s individual portfolio.
The sudden move by the Israeli social trading and multi-asset brokerage company took users by surprise, as Cardano has not conventionally been linked to regulatory issues. Digital assets like Ripple (XRP), which is presently involved in a lawsuit with the US Securities and Exchange Commission, and Monero (XMR) (with its privacy-enhancing technologies) which is thought to be a convenient source of abuse for malpractices, are witnessing highly strict regulatory investigations in the crypto world.
In the past year, ADA observed skyrocketing price rise positioning itself as one of the top ten crypto tokens by market capitalization. Charles Hoskinson, Cardano founder declared a collaboration with a regulatory technology for digital assets firm Coinfirm. The partnership will work on regulatory setups that engage in confronting issues like anti-money laundering directives.
The recent website post on de-listing of the crypto tokens has intricately addressed all the questions a user might have when faced with the news. Questions on how to sell holdings, what to do if one is not able to close them, and how to know more about transferring one’s holdings to a crypto wallet have been answered thoroughly in the blog post.
While the exact reason that led eToro to shut down possession operations with Cardano/TRON is not yet clear, it is true that several companies in the blockchain business frequently endure grueling pressure from the regulatory committees. A recent example in this regard can be derived from Coinbase when the American cryptocurrency giant had to drop its crypto lending programs following SEC’s warning to file a lawsuit against the firm.
Sanaa is a chemistry major and a Blockchain enthusiast. As a science student, her research skills enable her to understand the intricacies of Financial Markets. She believes that Blockchain technology has the potential to revolutionize every industry in the world.
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