eToro follows Robinhood, delists ALGO, MANA, DASH, MATIC for US users

Summary:
– eToro, the Israeli multi-asset investment platform, will soon restrict US customers from accessing Algorand (ALGO), Polygon (MATIC), Decentraland (MANA), and Dash (DASH).
– Users can still hold and sell existing positions in these tokens, but eToro will remove them from the platform on July 12, 2023.
– eToro’s move came after similar action by Robinhood and could be linked to recent SEC lawsuits against Coinbase and Binance.

eToro to Limit Crypto Offerings for US Customers

eToro, the Israeli multi-asset investment platform, has announced that US customers will no longer be able to access Algorand (ALGO), Polygon (MATIC), Decentraland (MANA), and Dash (DASH). The move comes after Robinhood recently took similar action. eToro’s decision may be linked to recent SEC lawsuits against Coinbase and Binance. The four tokens named in the announcement were deemed securities by the regulator in its recent lawsuits. While customers can still hold and sell existing positions in these tokens, eToro will delist them from the platform on July 12, 2023.

eToro’s Twitter Announcement

eToro made the announcement in a Twitter thread on June 12, 2023. The platform stated that it is „adjusting“ its crypto offering for US customers „due to recent developments.“ However, eToro will not apply the same restrictions to non-US customers. The company added that it is committed to working with regulators around the world to shape the future of the crypto industry and ensure access for ordinary investors.

SEC Lawsuits Against Crypto Exchange Giants

eToro did not mention the SEC lawsuits against Coinbase and Binance, but the regulator recently deemed the four tokens securities in its lawsuits. As the SEC’s enforcement approach to crypto continues, more companies could follow eToro and Robinhood’s example to avoid regulatory issues. However, this could negatively impact users located in the United States.

Robinhood’s Similar Move

Robinhood previously announced that it plans to remove SOL, MATIC, and ADA from its platform based on a „latest review.“ Users can still hold and sell these tokens on the platform, but the company will delist them.

Implications for US Users

The move by eToro and Robinhood could limit investment opportunities for US customers and harm the development of the crypto industry in the country. However, eToro’s commitment to working with regulators suggests that the platform aims to comply with regulations to ensure long-term stability and growth.