Coinspeaker
eToro Delists ALGO, MANA, MATIC and DASH for US Customers
eToro, a leading global trading platform, has announced that it will stop offering four crypto assets to its US customers. Beginning from July 12, 2023, Algorand (ALGO), Decentraland (MANA), Polygon (MATIC), and Dash (DASH) will no longer be available on the platform.
Why Is eToro Delisting These Crypto Assets?
According to eToro, the decision to delist these crypto assets stems from the evolving regulatory landscape in the US. The company said, “We are constantly monitoring the changing regulatory environment in the US and how it affects the crypto assets that we offer on our platform.”
Following the announcement, US customers can retain their current positions in these crypto assets. However, they will not be able to open new positions after the said date.
While the specific regulations affecting the assets weren’t stated, the announcement is likely related to the recent securities designation of some cryptocurrencies by the SEC. The SEC recently designated about nineteen assets as securities after suing Coinbase and Binance. The regulator argues that “these crypto assets are available for trading without restricting transactions to those who might treat the asset as anything other than as an investment”.
ALGO, MANA, MATIC, and DASH all have features that could make them resemble securities based on the SEC’s position. However, the Algorand Foundation has refuted the Commission’s classification of its ALGO token as a security. Similarly, Polygon Labs has vehemently denied claims that MATIC is security.
How Will This Affect the Crypto Market?
The delisting of these crypto assets by eToro may hurt their prices and liquidity. This is because they will lose access to a large and active customer base. The delisting may also signal a wider trend of regulatory pressure on crypto projects that offer innovative features and functionalities. This could discourage innovation and adoption in the crypto space. It could also create uncertainty and confusion for investors and traders.
However, some crypto experts remain optimistic that this is a temporary setback for the assets. One clear thing is that there is a need for regulatory clarity in the US crypto market, and the sooner this happens, the better for all parties.
