Simon Ng Etoro, the social trading and investment company, has recently announced its decision to delist four cryptocurrencies, namely ALGO, MANA, DASH, and MATIC, for its U.S. customers. The delistings will come into effect on July 12, 2023, and are attributed to the rapidly changing regulatory landscape surrounding cryptocurrencies.
In response to the evolving regulatory environment, Etoro, headquartered in Tel Aviv, Israel, has implemented a system to evaluate crypto assets. Starting from the specified date, American customers will no longer be able to initiate new trades involving the aforementioned four digital currencies. However, they will still have the option to hold and sell existing positions in these coins.
Etoro’s decision aligns with a similar move made by Robinhood, which recently delisted ADA, SOL, and MATIC. The delistings by both platforms follow lawsuits filed by the U.S. Securities and Exchange Commission (SEC) against major exchanges such as Binance and Coinbase. The SEC has asserted that some crypto assets are considered securities or investment contracts.
Interestingly, the SEC lawsuits specifically identified ALGO, MANA, DASH, and MATIC as securities. Consequently, the value of these cryptocurrencies has experienced significant declines against the U.S. dollar in the past week, with MANA falling by 24%, DASH by 25%, ALGO by 18.4%, and MATIC by 22%.
It is important to note that Etoro’s announcement only affects its U.S.-based clients, as clarified by the company on Twitter. Etoro emphasizes its commitment to collaborating with regulators worldwide to shape the future of the crypto industry and promote accessibility for ordinary investors.
What are your thoughts on Etoro’s decision and the broader impact of regulatory actions on the cryptocurrency industry? Please feel free to share your opinions and insights in the comments section below.
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Frequently Asked Questions (FAQs) about cryptocurrency delistings
Why is Etoro delisting ALGO, MANA, DASH, and MATIC for US customers?
Etoro is delisting these cryptocurrencies for US customers due to the rapidly evolving regulatory landscape surrounding cryptocurrencies. The decision is made in response to regulatory changes and the need to comply with the legal requirements.
Can US customers still trade these cryptocurrencies on Etoro?
Starting from July 12, 2023, US customers will no longer be able to initiate new trades for ALGO, MANA, DASH, and MATIC on Etoro. However, they can still hold and sell their existing positions in these coins.
Is this delisting only affecting Etoro?
No, this delisting follows a similar move made by Robinhood, which also delisted certain cryptocurrencies. The regulatory actions by the US Securities and Exchange Commission (SEC) have led to delistings by multiple platforms in order to comply with the evolving regulatory requirements.
How are these cryptocurrencies identified as securities by the SEC?
The SEC has filed lawsuits against major cryptocurrency exchanges, including Binance and Coinbase. In these lawsuits, the SEC has identified ALGO, MANA, DASH, and MATIC as securities or investment contracts, leading to regulatory scrutiny and delistings by platforms like Etoro.
How will these delistings impact the crypto industry?
Delistings of cryptocurrencies can have an impact on their liquidity and market value. Additionally, regulatory actions and scrutiny can influence investor sentiment and confidence in the crypto industry. It highlights the need for platforms and regulators to collaborate in shaping the future of the industry and ensuring access for ordinary investors.
More about cryptocurrency delistings
- Etoro’s official announcement on the delistings
- SEC lawsuits against Binance and Coinbase
- Robinhood’s delistings announcement
- Understanding cryptocurrency regulations
