eToro has announced it will be delisting some cryptocurrencies over what they termed "recent developments" in the crypto industry. It was apparent they were removing these crypto assets after legal battles started between some of the biggest crypto exchanges in the industry and the Securities and Exchange Commission.
The SEC had labeled some assets traded on Binance and Coinbase as illegal securities. Some assets Etoro Crypto removed from their platform include those indicted by the SEC as unregistered securities. The social investing platform eToro will delist a selection of crypto tokens for its U.S. customers within a month of announcing them.
According to the announcement they made on Monday, the trading platform noted that these new changes are because of the hostile environment in the United States.
"eToro has a framework in place which reviews the crypto assets we offer in light of the rapidly evolving regulatory landscape. Due to recent developments, we will be making some changes to our crypto offering for US customers," the crypto trading platform announced on Twitter.
eToro is to Start Delisting Assets From Next Month
eToro noted they wouldn't be starting the delisting exercise immediately. Instead, they would be doing that in a month's time. Within this period, Etoro has reiterated that four cryptocurrencies would be removed from the platform.
The removal exercise would begin on July 12th until they removed all the selected cryptocurrencies. New positions in the tokens of Algorand (ALGO), Decentraland (MANA), Dash (DASH), and Polygon (MATIC) would no longer be opened by users once Etoro is done with the delisting process.
"From 6:00AM ET on Wednesday July 12th, 2023, US customers will no longer be able to open new positions in Algorand (ALGO), Decentraland (MANA), Dash (DASH) and Polygon (MATIC). Customers can continue to hold and sell existing positions in these coins," the crypto exchange said. Etoro also encouraged the users to sell out any existing positions in any of the soon-to-be-delisted coins.
eToro has a framework in place which reviews the cryptoassets we offer in light of the rapidly evolving regulatory landscape. Due to recent developments, we will be making some changes to our crypto offering for US customers. (1/5)— eToro US (@eToroUS) June 12, 2023
EToro to Work with Regulators
EToro ended its announcement by saying they are committed to working with regulators worldwide. The trading platform was citing the new crackdown by the SEC, and they are willing to cooperate with the federal commission. The announcement only applies to US citizens using the Etoro app or website to trade cryptocurrencies.
"We remain a supporter of crypto assets and believe in the importance of offering our users access to a diversified range of asset classes, which includes stocks, ETFs, and options. We are committed to working closely with regulators around the world to shape the future of the crypto industry and champion access for the ordinary investor. Please note that these changes only apply to US customers," Etoro added.
EToro is taking part in many crypto exchanges that remove many assets termed illegal or unregistered by the Securities and Exchange Commission. Last week, another trading platform Robinhood removed cryptocurrencies like Cardano's ADA), Solana's SOL, and MATIC from their platform. Following the recent development, many trading platforms will follow suit.