EToro to Limit Cardano and Tron for US Customers, Coin Prices Fall

The prices of the cryptocurrencies’ tokens have taken a hit following the announcement.

Nov 24, 2021 at 1:40 p.m. UTC
Updated Nov 24, 2021 at 3:45 p.m. UTC

Sandali Handagama is a CoinDesk reporter with a focus on crypto regulation and policy. She does not own any crypto.

Trading platform eToro will be limiting crypto assets cardano (ADA) and tron (TRX) for U.S. customers starting in December due to “business-related considerations in the evolving regulatory environment,” according to a statement on its website.

  • The statement, published Tuesday, said that users in the U.S. will “no longer be able to open new positions in, or receive staking rewards for,” ADA and TRX.
  • Restrictions on opening new positions in ADA and TRX will take effect on Dec. 26, while staking for these assets will end on Dec. 31, the statement said.
  • The final staking rewards payout for both assets will take place on Jan. 15, 2022.
  • According to eToro’s announcement, users will still be able to “securely hold existing positions” for the two cryptocurrencies, as the limitations only apply to new positions.
  • Users can sell their ADA or TRX in exchange for U.S. dollars anytime, and eToro is working on a way to make it possible for users to move these two assets to their eToro crypto wallets, the statement said.
  • Since the announcement was published, at one point, ADA prices dropped by more than 6%. At press time, TRX was down 2.4%.
  • Taking to Twitter on Tuesday, Cardano founder Charles Hoskinson said eToro’s decision was due to a “systemic lack of clarity” in global crypto regulations.
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Sandali Handagama is a CoinDesk reporter with a focus on crypto regulation and policy. She does not own any crypto.

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Sandali Handagama is a CoinDesk reporter with a focus on crypto regulation and policy. She does not own any crypto.

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