Hoskinson highlighted that eToro’s decision responds to a lack of regulatory clarity around cryptocurrencies. The price of ADA has crumbled by almost 10% since the announcement.
Cardano founder and IOHK CEO Charles Hoskinson was quick to comment on the recent decision by the eToro trading platform to suspend ADA trading between US-resident users.
The popular platform eToro announced that it would stop offering trading support for cryptocurrencies like ADA from Cardano, and TRX, from Tron.
The policy would limit customers based in the US from opening new positions or receiving participation rewards for those cryptocurrencies as of December 26.
The platform cited some reasons for the decision. Among these reasons are business-related considerations in the evolving regulatory environment. It did not specify whether there were regulatory issues related to those tokens.
EToro caught the attention of many users and companies in the community, including Hoskinson, who took the opportunity to share his views and clarify doubts on the matter.
Hoskinson Responds Regarding eToro
During a YouTube broadcast, the mathematician noted that he is unaware that eToro has approached the Cardano Foundation to address this matter. In general, he was surprised by the decision and said that it responds to the systemic lack of clarity in cryptocurrency regulations globally.
On the other hand, the CEO also took advantage of the space to send a message of reassurance to the Cardano community, clarifying that eToro’s decision has nothing to do with Cardano and its legal issues.
Hoskinson said they did not receive regulatory events, subpoenas, anything from any regulatory agency, nor threat of a lawsuit, none of these things. That’s why Cardano is so surprised on the subject.
The CEO also added that the platform’s move has no significant impact on ADA’s liquidity. The move emerges amid a contrary trend in which a growing number of exchanges, centralized and decentralized, have started listing.
ADA Price Slides after the Announcement
The Cardano founder reiterated that IOHK, the technology development company behind the project, is not responsible for ADA’s listing or liquidity on exchanges.
Instead, the official said he expects more clarity from the Cardano Foundation on the matter. He expects more clarity about the work done with the exchanges and the agreements for the commercial listing.
Hoskinson also warned people not to fall into the misinformation and speculation circulating on the Internet. Finally, he ended up saying that the only way they can solve this situation as an industry is through more regulatory clarity.
The suspension of ADA on eToro had generated a toxic effect on the cryptocurrency price, making it plunge close to 9% following the news. According to data from CriptoMercados, the Cardano token is trading lower for USD 1.6. The coin fell almost 50% since the beginning of September when it reached an all-time high of USD 3.
By: Jenson Nuñez