On Tuesday, Israeli crypto exchange eToro announced plans to delist Cardano (ADA) and Tron (TRX) for US clients later this year.
After December 31, the users in question will no longer be able to open new positions or stake the ADA and TRX tokens, allowing only their withdrawal until the first quarter of 2022, when the sale will also be limited. As a justification, eToro cites the regulatory concerns surrounding both assets.
The decision came as a surprise to many, as ADA has never traditionally been associated with regulatory issues. Conversely, tokens like Ripple (XRP) – whose creators are currently engaged in an ongoing lawsuit with the Securities and Exchange Commission, or SEC – and Monero – a privacy coin feared by many as a medium of exchange for wrongdoing – are facing the brunt. regulatory oversight in the cryptocurrency industry.
This year, ADA has experienced a rapid rise in prices and is currently in the top 10 cryptocurrencies by market capitalization. During the previous quarter, Charles Hoskinson, founder of Cardano, announced a partnership with blockchain analytics provider Confirm to comply with regulatory frameworks, such as anti-money laundering guidelines. The decision was not welcomed by ADA supporters, who hoped the project would take on a more decentralized nature.
Companies operating in the blockchain industry often receive intense pressure from regulators when it comes to deleting coins or terminating certain services. In September, following threats of legal repercussions from the SEC, Coinbase abandoned the launch of its cryptocurrency lending platform. Now, however, the rise of decentralized exchanges and decentralized finance protocols, or DeFi, has provided alternatives for those seeking to circumvent such restrictions.