Popular Social Trading Platform eToro Suspends Purchases of MATIC, ALGO, and Two Other Altcoins
eToro, a well-known social trading platform, has decided to halt purchases of the layer-2 scaling solution Polygon (MATIC), the smart contract platform Algorand (ALGO), as well as gaming metaverse Decentraland (MANA), and privacy-focused protocol Dash (DASH). The decision comes after these altcoins were labeled as securities by a US regulatory body.
eToro’s Announcement and Regulatory Context
In an official statement, eToro clarified that its decision primarily affects US customers. The platform stated that it constantly reviews the crypto assets it offers in light of the rapidly evolving regulatory landscape. Consequently, due to recent developments and in response to the latest US crackdown on digital assets, eToro will be making changes to its crypto offering for its US customers.
SEC Lawsuits Against Top Crypto Exchanges
The decision by eToro comes at the same time as the US Securities and Exchange Commission (SEC) filed lawsuits against two of the world’s leading crypto exchanges, Binance and Coinbase, for allegedly violating securities laws. In these lawsuits, the SEC categorizes several altcoins, including the four that eToro is banning for purchase, as securities. The ban will be enforced from July 12 onwards. However, US customers will still retain the ability to hold and sell the four restricted assets.
eToro’s Commitment to Crypto Assets and Collaboration with Regulators
eToro emphasized its continued support for crypto assets and the belief in the importance of offering users access to a diverse range of asset classes, which include stocks, exchange-traded funds (ETFs), and options. The platform also expressed its commitment to working closely with regulators worldwide to contribute to shaping the future of the crypto industry and advocating for access to ordinary investors.
eToro’s customer service team is available to address any inquiries regarding these changes, and it is essential to note that the alterations only apply to US customers.
Similar Actions by Other Crypto Trading Platforms
Following the regulatory trend, other crypto trading platforms have taken similar actions. Robinhood, a trading giant, announced the delisting of Solana (SOL), Cardano (ADA), and Polygon starting June 27, as these tokens were also classified as securities by the SEC.
Impact of Regulatory Actions on Altcoin Prices
The regulatory body’s lawsuits have had significant repercussions on various altcoins’ prices, including large-cap tokens ADA, MATIC, and SOL, which experienced significant price declines last week.
The SEC’s increasing scrutiny and classification of certain altcoins as securities have prompted eToro and other crypto trading platforms to make changes in their offerings to comply with the evolving regulatory landscape. While eToro remains committed to supporting crypto assets and diversifying access for its users, the regulatory environment continues to shape the cryptocurrency industry’s future.