eToro announces the delisting of Cardano (ADA) and Tron (TRX), pointing out regulatory issues

The cryptocurrency exchange eToro has just announced that it will remove two major cryptocurrencies from its platform. As regulatory issues intensified, cryptocurrency exchanges found themselves at the brunt and had to take steps to avoid this situation. This led to the delisting of cryptocurrencies from crypto exchanges in order to maintain compliance with the regulatory environment.

Under the pressure of regulatory issues, the latest exchange is eToro.On Tuesday, the exchange passed Blog post It will remove the community favorites Cardano (ADA) and Tron (TRX). Users of cryptocurrency exchanges also received emails to inform them of the latest developments.

Related Reading | Kraken is delisting Monero (XMR), the top privacy currency for UK users

eToro restricts access to U.S. users

According to the announcement, US users are the core user group affected by currency delisting. In what appears to be a multi-stage delisting process, eToro will restrict access to these digital assets for US users on December 26, 2021.

The first stage is to prevent American users from opening new positions in Cardano (ADA) and Tron (TRX). Although users can still close their positions, they will not be allowed to open new positions. In addition, eToro will also cancel the pledge function of Cardano (ADA) and Trong (TRX) for US users, and the final reward payment will occur on January 15, 2022.

ADA price drops to $1.8 | Source: ADAUSD on TradingView.com

The statement listed the “evolving regulatory environment” as the reason behind the delisting.This fits Kraken delists Monero, a privacy coin for its UK usersThe cryptocurrency exchange also expressed regulatory concerns about this move.

How will this affect ADA and TRX holders?

The blog post explained that after delisting, holders of Cardano (ADA) and TRON (TRX) can still hold these two assets on the exchange. In addition, they will be able to sell their positions in U.S. dollars. However, this also has an expiration date because it indicates that the sale of these two assets will also be restricted in the first quarter of 2022.

Related Reading | Cardano founder reiterated long-term goals in selling panic

For users who invest in a smart portfolio containing one or both of these assets, eToro will convert them into open positions, and users can choose to hold or close them. Users whose portfolios copy other people will be subject to the same actions taken on the copied portfolios. Therefore, if the latter sell their Cardano (ADA) and Tron (TRX), then the assets in the copy portfolio will also be sold.

Finally, users can still send their assets to the eToro Money encrypted wallet after the sales deadline, and will not be forced to sell any assets they hold in any asset.

Featured image from Time.com, chart from TradingView.com

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