After Israeli broker eToro announced its decision to get off the list for American clients, the price of Cardano’s ADA tokens fell sharply by nearly 9% late on Wednesday.
According to the TradingView ADA/USD chart on November 25, the value of the ADA token fell below $1.6, its lowest price in three months. After the value of the token hit a high of more than $3 in early September, it is already on a correction path. Despite the recent changes, ADA rose 800% in 2021 and is now valued at more than $55.3 billion.
Cardano Delisting Due to Need for a Regulatory Framework
eToro stated in its decision on Tuesday that it will restrict the use of Cardano’s ADA and Tron by American users, citing regulatory issues in the country.
eToro stated that US users will no longer be able to open new positions or receive pledge rewards in Cardano (ADA) and TRON (TRX). The broker will prevent US users from using these tokens to open new ones on December 31st.
However, it will allow ADA and TRX holders to liquidate their positions without restrictions, stating that it will not force users to sell existing positions.
eToro added that the changes are due to business-related considerations in the ever-changing regulatory environment.
Charles Hoskinson Response
In response to the trading platform’s decision, Cardano founder Charles Hoskinson posted a video on Twitter accusing cryptocurrency of “lack of global regulatory standards”.
Hoskinson stated that this is just the nature of the game and the only way to solve this as an industry is through regulatory clarity. If you are a European company with large European customers you will typically limit your exposure to the United States because the cost of exposure to the United States is very high.
In addition, Tron was also affected by the decision and its market value decreased by about 6%. At the same time, after the government tabled a bill that would ban all private cryptocurrencies to be proposed in the next parliamentary session, cryptocurrency prices on Indian exchanges took a heavy blow on Wednesday.