From January 1, 2022, Cardano ADA and TRON TRX will no longer be listed on eToro for customers in the United States.
eToro recently revealed that the social-trading platform will remove Cardano and Tron for customers in the United States by the end of the year, due to regulatory concerns. Users will still be able to withdraw their ADA and TRX holdings.
The Israeli crypto exchange said it would also delist Tron (TRX). The move comes as a surprise given the currency has not typically on regulators’ radars. ADA shot up in value this year and currently ranks among the top 10 cryptos by market capitalization, according to Coinmarketcap.
Months earlier, Charles Hoskinson, Cardano’s founder, announced the company was working with blockchain analytics provider Confirm. To ensure the currency complied with financial laws, such as anti-money laundering regulations.
According to eToro, the decision is solely due to business-related reasons, citing the evolving crypto regulatory environment. Notably, regulators in the United Kingdom and the U.S. have in recent months focused on exchanges as part of regulating the crypto sector.
“Above all, we are disappointed to take this step,” an eToro representative said. “eToro will continue to be active supporters of the crypto ecosystem.”
The news came as a surprise to the crypto community, particularly after Luxembourg exchange BitStamp announced it would list Cardano last week. Hoskinson downplayed concerns. “We didn’t even get delisted,” he tweeted, in response to a comment about the BitStamp listing. “Ada is still on eToro and non-US customers can freely trade.”
While he respects eToro’s right to make business decisions as it deems fit, he felt that he had been blindsided by the company. He revealed that most exchanges are in constant communication with IOG and the Foundation and usually notify them of any changes or issues. IOG even gives some exchanges access to internal Slack so that they can interact with developers and get issues solved quickly.