Etoro to Limit US Customers‘ Access to Four Major Cryptocurrencies
- eToro, an Israeli multi-asset investment platform, is delisting four tokens — ALGO, MATIC, MANA, and DASH — for US customers starting July 12.
- US customers can still hold and sell already open positions in these tokens.
- This comes shortly after a similar move by Robinhood in June.
eToro is an Israeli multi-asset investment platform widely known for social trading. It allows users to buy and sell cryptocurrencies as well as stocks, ETFs, indices, commodities and more. In the SEC’s most recent legal actions, the four tokens mentioned in the eToro announcement were classified as securities.
Recent Developments by Etoro
According to a tweet by eToro on 13 June 2023, four tokens — ALGO, MATIC, MANA and DASH — will be delisted from their platform for US customers starting July 12th. The company claims that this new change won’t have an impact on non-US customers but that US customers can continue to hold and sell any open positions in these tokens.
Similar Actions by Trading Platforms in the US
The move by eToro comes shortly after one similar one by Robinhood in June 2020 where they removed SOL, MATIC and ADA from its platform due to its „latest review“. With the SEC’s recent enforcement strategy toward cryptocurrencies more businesses may follow in the footsteps of eToro and Robinhood in order to avoid regulatory issues that could further negatively impact users based in the US.
By delisting certain cryptocurrencies from their platform for US customers only – eToro hopes to avoid potential issues with regulators while still providing a service beneficial to their non-US customer base. Other platforms such as Robinhood have taken similar action due to the SEC’s increased scrutiny of cryptocurrency exchanges operating within the United States.