Etoro, an Israel-based trading platform, has taken action on the Cardano and tron transactions on its platform. Now, starting in December, U.S. customers will be restricted from using these cryptocurrencies on the Etoro platform. Etoro explained in an article that these new measures are the result of “business-related considerations in the ever-changing regulatory environment.”
Etoro restricts Cardano and Tron transactions for US customers
Etoro is one of Israel’s most important trading companies, and it restricts tron and Cardano transactions for American users. The announcement was published on the blog on November 23 postal Inform customers of the restrictions that these assets will be applied to the platform. From December 26, users will not be able to open positions for these cryptocurrencies, and will no longer be able to mortgage these assets from December 21 next year.
However, this only applies to new positions. Existing positions must be maintained by users, but when they are closed, operating expenses (if any) will be processed in U.S. dollars. In addition, the positions in the smart portfolio will be converted into personal positions for users to maintain. Etoro stated that it is taking these measures due to “business-related considerations in the ever-changing regulatory environment”.The company may try to protect itself from the regulatory uncertainty that the cryptocurrency industry faces in the U.S.
Unexpected measures taken by Etoro prompted reply From Charles Hoskinson, The founder of Cardano. Hoskinson talked about the general regulatory uncertainty faced by cryptocurrencies in the world, especially in the United States. On this issue, Hoskinson said:
This seems to be an adjustment to the risk control and policy of certain European entities, where the liquidity of American participants has decreased.
At the same time, Bitstamp, another European cryptocurrency exchange, announced that it would join Cardano on its platform. This will support Hoskinson’s above assessment, which shows that the contraction of Etoro is only a specific action on a single platform, rather than a symbol of overall rejection. Hoskinson also clarified that Etoro’s actions will not affect the liquidity of currencies in the market because it is a relatively small platform for tokens.
Hoskinson also called for clear regulation, pointing out that this would be the only way to solve all these problems. On the other hand, Tron founder Justin Sun (Justin Sun) did not make any statement on the matter.
What do you think of Etoro restricting Cardano and Tron functions on its platform? Tell us in the comments section below.
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