eToro Bans U.S. Users From Trading Popular Tokens Following SEC Crackdown

Key Points:

• eToro, a popular stock and crypto trading platform, has announced that users based in the U.S. will no longer be able to open new positions in Algorand, Decentraland, Dash, and Polygon after July 12, 2023.
• This decision was made after the SEC accused a large number of tokens as securities, leading to a crackdown on trading activity.

eToro, a popular stock and crypto trading platform, has announced that users in the U.S. will not be able to open new positions in Algorand (ALGO), Decentraland (MANA), Dash (DASH), and Polygon (MATIC) starting July 12, 2023, after the U.S. Securities and Exchange Commission (SEC) accused a large number of tokens, including the aforementioned ones, as securities.

According to CryptoSlate, stock, and crypto trading platform eToro revealed that it would restrict access to specific cryptocurrencies for users in the United States. Effective from 6:00 a.m. ET on July 12, 2023, users in the U.S. will no longer be able to open new positions in Algorand (ALGO), Decentraland (MANA), Dash (DASH), and Polygon (MATIC), according to a report by CryptoSlate.

eToro clarified that while U.S. customers would be prohibited from initiating new positions in these assets, they would still be allowed to hold and sell any existing positions. This change in policy is solely applicable to U.S. users, with non-U.S. customers remaining unaffected by the decision.

The trading platform attributed its action to evolving regulatory conditions, stating that it had taken this step due to “recent developments” in the regulatory landscape. Although the email did not explicitly specify the regulatory concerns, the four affected cryptocurrencies were named in lawsuits filed by the U.S. Securities and Exchange Commission (SEC) against Coinbase and Binance, starting on June 5.

It is worth noting that eToro, primarily recognized as a trading platform, facilitates the closure of open cryptocurrency positions and allows users to withdraw their balances in either cash or cryptocurrency. This differs from most traditional cryptocurrency exchanges, which focus on direct trading of digital assets.

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