Hoskinson said that eToro’s move responds to a lack of regulatory clarity around cryptocurrencies. The price of ADA has plummeted almost 10% since the announcement.
The founder of Cardano and CEO of IOHK, Charles Hoskinson, was quick to comment on the trading platform’s recent decision eToro to suspend ADA operations between users residing in the United States.
As reported DailyBitcoin, the popular platform eToro, which offers stock and cryptocurrency trading, announced Tuesday that will stop offering commercial support for ADA cryptocurrencies, from Cardano, and TRX, from Tron.
The measure will limit customers located in the US from “open new positions or receive participation rewards”For those cryptocurrencies as of December 26. Although it should be noted that users will still be able to maintain existing positions for both tokensas the limitations only apply to new positions, he said. eToro.
In its notice, the platform cited as reasons for the decision the “business-related considerations in the evolving regulatory environment“; although it did not specify whether there were regulatory issues related to these tokens.
The unexpected movement of eToro He caught the attention of many in the community, including Hoskinson, who took the opportunity to share his opinions and clarify doubts on the subject.
Hoskinson responds to eToro’s measure
During a YouTube broadcast, the mathematician stressed that he has no knowledge that eToro has approached the Cardano Foundation to address this issue. In general, he was surprised by the measure and said that the decision responds to the “systemic lack of clarity”In cryptocurrency regulations globally.
It is important to speak in general about the regulatory reality of cryptocurrencies and the consequences facing the industry in the face of the systematic lack of regulatory clarity. There is currently no global regulation standard on how to treat digital currencies.
Liquidity and Etoro https://t.co/X9sgPdpjgL
– Charles Hoskinson (@IOHK_Charles) November 23, 2021
On the other hand, Hoskinson also took advantage of the space to send a message of tranquility to the community Cardano, emphasizing that the decision of eToro has nothing to do with legal problems of Cardano. “Nor we have received nothing: no regulatory events, no subpoenas, nothing from any regulatory agency, no threat of lawsuit, none of these things. That’s why we are so surprisedHe commented.
The founder added that the platform’s move has no significant impact on ADA’s liquidity, and that it emerges amid a rather contrary trend in which a growing number of exchanges, centralized and decentralized, have started listing. the cryptocurrency. Hoskinson said that each platform has its own “regulatory thresholds”And speculated on the decision:
It appears to be an adjustment in risk control and policy for a particular European entity and liquidity was reduced there for US participants. However, just at the same time, another exchange that is bigger, Bitstamp, listed ADA. It is under the same regulatory structure as the other one and they have American clients so they seem to think there is no problem.
ADA price slides after announcement
The founder of Cardano reiterated that IOHK, the technology development company behind the project is not responsible for the listing or the liquidity of ADA in the exchanges. Instead, he said he hopes the Cardano Foundation Provide more clarity on the subject, as well as explain about the work they do with the exchanges and about the process of agreements for the commercial listing.
Also, Hoskinson called on people not to fall into the misinformation and speculation circulating on the Internet.
We have repeatedly noticed fear, uncertainty and misinformation [FUD]. People take something and try to extrapolate it for the purpose of damaging the ADA price. Liquidity is improving, don’t be fooled by the FUD.
Finally, he concluded that the “The only way we can solve this as an industry is through more regulatory clarity.”
The suspension of ADA in eToro has had a devastating effect on the price of the cryptocurrency, which has plummeted about 9% after the news. According to data from CryptoMarkets, the token of Cardano is trading lower at a price of USD $ 1.6. The coin has fallen almost 50% since the beginning of September, when it reached an all-time high of USD $ 3.
Article by Hannah Estefanía Pérez / DailyBitcoin
Image from Unsplash