Popular social trading platform eToro is stopping purchases of tier-2 scaling solution Polygon (MATIC), smart contract platform Algorand (ALGO) and two other altcoins after a US regulator designated them as securities.
In a new announcement, eToro say that US customers will no longer have the option to purchase ALGO, MATIC and gaming metaverse Decentraland (MANA) and the privacy-focused protocol Dash (DASH) as a result of the latest US crackdown on digital assets.
“eToro has a framework that assesses the crypto assets we offer in light of the rapidly evolving regulatory landscape. Due to recent developments, we will be making some changes to our crypto offerings for US customers.”
eToro’s decision coincides with the U.S. Securities and Exchange Commission (SEC) suing Binance and Coinbase, the world’s two largest crypto exchanges, for allegedly violating securities laws.
In the lawsuits filed last week, the SEC labels several altcoin securities, including the four that eToro has banned for purchase. The ban will take effect on July 12. US clients still have the option to hold and sell the four assets.
“As of 06:00 ET on Wednesday, July 12, 2023, US clients will no longer be able to open new positions in Algorand (ALGO), Decentraland (MANA), Dash (DASH), and Polygon (MATIC). Clients can continue to hold and sell existing positions in these currencies.
We remain a proponent of crypto assets and believe in the importance of providing our users with access to a diversified range of asset classes, including stocks, exchange-traded funds (ETFs), and options.
We are committed to working closely with regulators around the world to shape the future of the crypto industry and promote access for the common investor.
Please note that these changes only apply to US customers. If you have any questions, please do not hesitate to contact our customer service.”
Other crypto trading platforms have made similar moves.
Trading giant Robinhood is delisting Solana (SOL), Cardano (ADA), and Polygon as of June 27 because they have been designated as securities by the SEC.
Many altcoins collapsed in price last week, including large-cap tokens ADA, MATIC, and SOL, following the regulatory lawsuits.
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