eToro Freezes ALGO, MATIC, MANA, And DASH Purchases For U.S. Clients

 eToro, a global retail trading giant, suspended purchases on Algorand (ALGO), Polygon (MATIC), Decentraland (MANA), and Dash (DASH) for its customers based in the United States. 

The U.S. SEC’s recent lawsuits against Binance and Coinbase are causing a chain of negative events in the crypto space. This suspension comes as the US Security and Exchange Commission (SEC) labeled the tokens as securities in recent lawsuits. 

Exchanges and trading platforms such as Robinhood and eToro are delisting tokens to prevent a run-in with the law on the unauthorized sale and trade of securities. 

eToro Makes Official Anrobunhoodnouncement

In a Tweet on June 12, eToro US noted that it recently reviewed its crypto asset listing due to the rapidly changing regulatory landscape.  According to the announcement, customers cannot open new positions in ALGO, MANA, DASH, and MATIC.

The assets will officially delist by 6:00 AM ET on Wednesday, July 12, 2023. However, customers can continue to hold and sell their existing positions for these tokens. 

In its posts, eToro affirmed its commitment to working with regulators worldwide to shape the future of the crypto industry and grant access to ordinary investors. 

Despite the turn of events. eToro claims to support other crypto assets, thus giving users access to a wide range of assets. Also, they stated that the changes only apply to US customers, and their customer care team was available to answer all questions.

Update – As of 2024, the only cryptocurrencies eToro users in the United States will be able to trade on the platform will be Bitcoin, Bitcoin Cash and Ethereum.

Crypto Community Member Questions Decision

A crypto enthusiast on Twitter asked why eToro is delisting Polygon and Algorand from their platform but not Solana. 

In response, the trading platform noted that Solana (SOL) and Cardano (ADA) were made unavailable to eToro US users based on a previous review. Therefore, the notice only affected the specific assets mentioned in the announcement. 

Robinhood Also Delists Cardano, Polygon, and Solana

Earlier this month, cryptocurrency and stock trading platform Robinhood announced the delisting of ADA. MATIC and SOL tokens. This announcement is also a reaction to the SEC’s stance that these tokens are securities in its recent lawsuit against Coinbase and Binance.

On June 9, Robinhood announced that it would end support for these three tokens from June 27 after a review. According to the crypto firm, the SEC’s recent allegations introduced a cloud of uncertainty surrounding these assets, thus leading to this decision. 

However, they noted that customers with SOL, MATIC, and ADA tokens would receive specific and detailed instructions on how to sell and withdraw the tokens. Also, they stated that they believe in the future of crypto and will continue to advocate for regulatory clarity in the U.S.

The recent regulatory actions of the SEC have increased FUD levels in the crypto market as more platforms and exchanges seek to avoid regulatory pressure.