eToro, a popular trading network has announced that it will remove trading services of four cryptocurrencies for its US users. In a recent update, the Central Isreal-based social trading company has said that its United States users will no longer have access to trading some listed cryptocurrencies including Algorand (ALGO), Decentraland (MANA), Dash (DASH), and Polygon (MATIC).
Following the Securities and Exchange Commission (SEC) crackdown on popular crypto exchanges Binance and Coinbase, eToro has reviewed some of the tokens offered to US customers.
The lawsuit against the two crypto giants included a list of cryptocurrencies that the SEC has classified as securities. The aforementioned coins were also included in the list.
eToro made this known via an email shared with CryptoSlate saying that it would limit access to certain cryptocurrencies to its users in the United States. According to the report, the ban will commence on July 12 after 6:00 a.m. ET.
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While US consumers will be unable to open new positions in the listed assets, they will be able to keep and sell any existing positions, according to eToro. This policy change only applies to users in the United States; non-U.S. customers are unaffected.
Commenting on the basis for the move, eToro cited “recent developments” in a “rapidly evolving regulatory landscape” as the reason for the action. Even though eToro didn’t exactly point to the exact regulatory developments, ALGO, MANA, DASH, and MATIC were listed in the lawsuit the regulatory body filed against Binance and Coinbase on June 5.
Although the four mentioned cryptocurrencies are just a few from the long list of tokens classified as securities in the SEC’s lawsuit, eToro didn’t mention the rest probably because they are not supported by the platform.
Ultimately, eToro is popularly known as a trading platform. The platform enables users to close open crypto positions and also withdraw their balance either in cryptocurrency or in cash. Meanwhile, this is unlike other crypto exchanges that offer direct digital assets trading.
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications such as Coinfomania and Crypto News Guru, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.