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

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.