Following a crackdown by the SEC, eToro prohibits U.S. users from trading popular tokens
Key Points:
- eToro, a famous stock and crypto exchanging stage, has reported that clients situated in the U.S. can presently not open new situations
- in Algorand, Decentraland, Run, and Polygon after July 12, 2023.
- After the SEC accused a large number of tokens of being securities, a crackdown on trading was implemented.
After the U.S. Securities and Exchange Commission (SEC) accused a large number of tokens, including the aforementioned ones, of being securities, eToro, a popular stock and cryptocurrency trading platform, has announced that beginning July 12, 2023, users in the United States will not be able to open new positions in Algorand (ALGO), Decentraland (MANA), Dash (DASH), and Polygon (MATIC).
eToro, a stock and cryptocurrency trading platform, disclosed to CryptoSlate that it would restrict US users’ access to particular cryptocurrencies. According to a CryptoSlate report, users in the United States will no longer be able to open new positions in Algorand (ALGO), Decentraland (MANA), Dash (DASH), and Polygon (MATIC) beginning at 6:00 a.m. ET on July 12, 2023.
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eToro clarified that U.S. customers would still be permitted to hold and sell any existing positions, but they would not be permitted to open new positions in these assets. This adjustment of strategy is exclusively appropriate to U.S. clients, with non-U.S. clients staying unaffected by the choice.
The exchanging stage credited its activity to advancing administrative circumstances, expressing that it had made this stride because of “late turns of events” in the administrative scene. The four affected cryptocurrencies were named in lawsuits filed by the U.S. Securities and Exchange Commission (SEC) against Coinbase and Binance beginning on June 5, despite the fact that the email did not specifically mention the regulatory concerns.
It is important to note that eToro, which is primarily known as a trading platform, enables users to close open cryptocurrency positions and withdraw their balances in either cryptocurrency or cash. This is different from the majority of conventional cryptocurrency exchanges, which concentrate on direct digital asset trading.