The social trading exchange, eToro, said it would delete both Cardano (THERE IS), Vatron (TRX) for US users, and affected users will not be able to open new positions or receive rewards in connection with those tokens.
The company said the move was due to "considerations" related to the "evolving regulatory environment", and did not provide any further comments on what exactly that means:
"These changes are due to business considerations in the evolving regulatory environment."
Read also: As its value increases... eToro expects more regulation in the cryptocurrency market
Details of eToro cancellation for Tron and Cardano
US users will not be able to open new Cardano or Tron sites, according to a publication from eToro, from December 26.
While the December 31st when contemplating these digital assets ends, and what's more, prize rewards are set to end on 15 January 2022, where the final reward is paid in US dollars rather than the relevant tokens.
The company explained that it restricts US users from opening new positions, and it does not force them to close existing open positions, but with that, the net result will still see a decline in Cardano and Tron trading volumes over time.
eToro commented that they were disappointed in having to take this step, but remain committed to actively supporting the crypto ecosystem in general:
“You will still be able to close your positions as you wish.”
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The head of the IOHK aligns with his views on regulating cryptocurrency in the United States
Cardano founder Charles Huskinson said: Charles Hoskinson In an interview with the channel Thinking Crypto On YouTube last week, the US needed a fresh look in terms of crypto regulation.
Add to this that the current regulatory environment does not work well with digital assets, and in particular, Hoskinson highlighted flaws in both the functional and tariff systems.
Explaining further, he said, encryption needs to be regulated based on how it works or is used:
“The United States should move to a functional regulatory regime rather than a tariff regime. We have transcended the world with one thing being a commodity, one being the currency, one being security.”
Working with the identification system, Hoskinson criticized regulators' failure to identify adequately sound definitions, citing providers of virtual assets and utility tokens as examples.
“We need to move to a system of regulation that has much better definitions about things. So we really don't have a good definition of virtual assets service provider in the US. We don't actually have a definition of what a utility symbol is…”
Overall, he said, the industry needed a better business model and a better definition model to move forward with more equitable regulation.
Also Read: Will New US Regulations Lead to a Blockchain Brain Drain?
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