Cryptocurrency exchange eToro has just announced that it will remove two major cryptocurrencies from its platform. With the growth of regulatory concerns, cryptocurrency exchanges found themselves bearing the brunt and had to take steps to avoid it. This has resulted in the removal of cryptocurrencies from cryptocurrency exchanges in order to maintain compliance with the regulatory environment.
The latest exchange that has been freaking out under the weight of regulatory concerns is eToro. On Tuesday, the exchange announced via a blog post that it will remove community favorites Cardano (ADA) and Tron (TRX). Cryptocurrency exchange users also received emails informing them of the latest developments.
Related reading | Kraken removes Monero from the list of Top Privacy Coin (XMR) for UK users
eToro restricts access to US users
According to the announcement, US users are the primary user base that will be affected by the coins delisting. In what appears to be a multi-stage write-off, eToro is restricting access to this digital asset to US users on December 26, 2021.
The first stage of this prevents US users from opening new jobs in Cardano (ADA) and Tron (TRX). While users will still be able to close their positions, they will not be allowed to open new positions. In addition, eToro will also remove staking features for US users of Cardano (ADA) and Trong (TRX), with final rewards to be paid on January 15, 2022.
ADA price drops to $1.8 | Source: ADAUSD on TradingView.com
The statement cited the “evolving regulatory environment” as the reason for the write-offs. This is in line with Kraken’s Monero coin delisting its users in the UK. The cryptocurrency exchange has also expressed regulatory concerns about the move.
How will this affect ADA and TRX holders?
The blog post clarified that holders of Cardano (ADA) and Tron (TRX) will still be able to hold both assets on the exchange after delisting. Furthermore, they will be able to sell their positions against the US dollar. However, this also has an expiration date as it was stated that the sale of both assets will also be limited in the first quarter of 2022.
Related reading | Cardano founder reiterates long-term purpose amid sell-off panic
For users who have invested in a Smart Wallet containing any or both of these assets, eToro will convert them into open positions, which the user can choose to hold or close. Users whose wallets you copy will be subject to the same action as the wallet being copied. So if the latter sells Cardano (ADA) and Tron (TRX), the assets in the copy portfolio will also be sold.
Finally, users will still be able to send their holdings to the eToro Money crypto wallet after the sale deadline and will not have to sell any of their holdings in any of the assets.
Featured image from Time.com, chart from TradingView.com