eToro closes its doors for several cryptocurrencies.
In the wake of recent securities litigations filed by the Securities and Exchange Commission (SEC), eToro, the retail trading platform, has ceased the acquisition of Dash (DASH), Algorand (ALGO), Polygon (MATIC), and Decentraland (MANA) for its US-based clients.
The swift and proactive decision by eToro was made public via a Twitter thread on June 12th, marking a response to the fast-paced regulatory changes and the SEC's recent actions.
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The termination of these purchases is set to come into effect on July 12th at 6:00 am Eastern Time, leaving eToro's US clientele with the option to retain or liquidate their existing holdings in these assets.
Despite the delisting, eToro expressed its firm commitment to crypto assets, emphasizing the significance of granting access to a diverse spectrum of asset classes to its users, including stocks, options, and ETFs.
As a part of its proactiveness, the company assured its dedication to engage and work alongside global regulators to influence the future of crypto commerce and advocate for ordinary investors.
Notably, the company's decision to delist these assets is seen as a careful approach to avoid possible regulatory scrutiny, as seen with Coinbase and Binance. Both firms have recently faced lawsuits from the SEC, who alleged that significant assets like SOL, MATIC, ALGO, MANA, and others are indeed securities.
Intriguingly, questions emerged from the community as to why SOL wasn't included in eToro's recent delisting, as it was also recently classified as a security by the SEC. This curiosity was resolved by an eToro representative stating that SOL isn't included in their US offerings.
This move isn't unprecedented for eToro's US operations, as the platform had previously removed Ripple (XRP) from its listing in December 2020 in response to a lawsuit against Ripple Labs by the SEC. This shows eToro's continued caution and adaptability in the face of an evolving regulatory environment in the crypto industry.
