eToro to Delist ADA for US Users by 2022 Due to Regulatory Concerns

In a statement to customers on Tuesday, Israeli cryptocurrency exchange eToro announced that it will delist Cardano (ADA) and Tron (TRX) for U.S. customers by the end of the year.

After December 31, US users will no longer be able to open new positions in these two tokens, nor can they stake ADA and TRX. Additionally, the wallet will be in withdrawal-only mode until Q1 2022, at which time sales will also be limited. In making this decision, eToro cited regulatory concerns surrounding the two assets.

The move came as a surprise to some, as the ADA has historically not been involved in regulatory issues. Tokens like Ripple (XRP), whose creator is in ongoing litigation with the U.S. Securities and Exchange Commission (SEC), and the privacy coin Monero, which some fear can be easily misused for illicit purposes, are among the most popular cryptocurrencies in the world. The industry is facing an onslaught of regulatory scrutiny.

ADA has experienced rapid price increases this year and is currently ranked among the top 10 cryptocurrencies by market capitalization. In the last quarter, Cardano founder Charles Hoskinson announced a partnership with blockchain analytics provider Confirm to comply with regulatory frameworks such as the Anti-Money Laundering Directive. The move has come under fire from some ADA proponents, who want the project to have a more decentralized nature.

Companies in the blockchain industry are often under intense pressure from regulators when it comes to delisting certain coins or terminating certain services. In September, Coinbase dropped plans for its crypto lending platform after the U.S. SEC threatened to sue Coinbase. For now, however, the rise of decentralized exchanges and decentralized finance protocols offers welcome alternatives for those looking to legally circumvent such crackdowns.

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