The price of Cardano’s ADA token dropped significantly by almost 9 percent on late Wednesday after the Israeli broker, eToro announced its decision to delist the cryptocurrency for US customers.
The value of the ADA token dropped below $1.6, which is its lowest price point in three months. The token was already on a corrective trajectory after its value peaked at more than $3 in early September. Despite the recent correction ADA rallied 800 percent in 2021 and now has a market cap of more than $55.3 billion.
A Regulatory Framework Is Much Needed
eToro, in its decision on Tuesday, said that it will limit Cardano’s ADA and Tron for US users, citing regulatory woes in the country.
“These US users will no longer be able to open new positions in, or receive staking rewards for, Cardano (ADA) and TRON (TRX),” eToro stated. The broker will restrict US users from opening new positions with these tokens from December 26 and will end staking on December 31.
However, it will allow ADA and TRX holders to liquidate their positions without any restriction, stating ‘we are not forcing users to sell any existing positions’.
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“These changes are due to business-related considerations in the evolving regulatory environment,” eToro added.
In response to the trading platform’s decision, Cardano Founder Charles Hoskinson posted a video on Twitter, blaming the lack of a ‘global regulatory standard’ for cryptocurrencies.
“This is just the nature of the game… and the only way we’re going to solve this as an industry is through regulatory clarity,” Hoskinson added. “If you’re a European entity with principal European customers, you usually limit your U.S. exposure because the cost of U.S. exposure is extremely high.”
In addition, Tron suffered the impact of the decision, shedding around 6 percent of its market value.
Meanwhile, the crypto prices on Indian exchanges took a massive hit on Wednesday after the country’s government listed a bill to be introduced in the next parliamentary session that might ban all private cryptocurrencies.