- Cardano continues to face regulatory pressure in the US.
- Despite challenges in the US, other regions are welcoming Cardano with open arms.
- Will the SEC take note of other countries’ recent embrace of crypto assets?
Cardano has been under a lot of regulatory pressure since the United States Securities and Exchange Commission (SEC) classified the asset as an unregistered security in its high-profile lawsuit involving major exchanges.
However, amidst the challenges in the US, Cardano is finding opportunities in other regions where countries are embracing cryptocurrencies with open arms.
Welcoming Cardano
After facing copious amounts of sell pressure due to the SEC’s classification of the asset as an unregistered security, Cardano finds itself being welcomed in different parts of the world as countries look to become more crypto-friendly.
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Following Hong Kong’s recent implementation of crypto-friendly laws that allowed investors to trade select cryptocurrencies, including Cardano, Indonesia is also following suit. The fourth most populous country is aiming to establish itself as a crypto hub by listing over 450 crypto assets, including Cardano (ADA), Ethereum (ETH), Solana (SOL), Polygon (MATIC), and more as commodities.
Under the regulatory framework established by BAPPEBTI, the Indonesian equivalent of the SEC, investors in Indonesia can now trade several crypto assets in the country. BAPPEBTI evaluated various tokens based on utility, functionality, and intrinsic value within their respective blockchain ecosystems, prioritizing clarity, investor protection, and promoting innovation and technological advancement in cryptocurrency.
Indonesia’s listing of Cardano marks a significant milestone. It offers a myriad of growth prospects for the token, as it stands in stark contrast to the SEC’s crypto crackdown in the US.
Cardano Not Welcomed?
The SEC’s official case filing against Binance and Coinbase left Cardano reeling from a barrage of damaging accusations. The regulator alleged the POS chain’s founding entities owned the protocol, implying it lacked decentralization.
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The regulator reportedly neglected many important facts and figures in its justification. While Cardano’s founding entities have publicly refuted the SEC’s claims, the damage was already done as the asset plunged by more than 44%.
Despite its founders’ efforts to clear the negative air, Cardano’s status remains unclear in the US. While Coinbase has taken a stand against the SEC, refusing to delist ADA from its exchange, other platforms like Robinhood and eToro have already taken steps to stop offering ADA to their users.
At press time, Cardano exchanged hands at $0.28, boasting a market cap of $10 billion and a daily trading volume of over $217 million, according to CoinMarketCap.
On the Flipside
- Many exchanges and assets are finding a home in other regions as the US crypto crackdown rages on. Binance has found its place in the UAE after facing scrutiny from the SEC.
- Cardano Founder Charles Hoskinson believes the SEC’s action against Binance is motivated by a hidden agenda of implementing CBDCs.
Why This Matters
Stricter regions like the US, which has a very ambiguous framework, should note Indonesia and Hong Kong’s approach to crypto laws. Indonesia boasts over 17 million crypto investors, and the number could propel following its decision to list a majority of crypto assets as commodities.
Read more about Cardano:
Cardano DeFi TVL Resurges, New ATH, Volume Spike, and More
Read more about the SEC’s effects:
Robinhood Lays Off 7% Staff After It Delists Cardano, Solana, Polygon
FAQs
The United States Securities and Exchange Commission had claimed that Cardano’s native token ADA is an unregistered security in lawsuits against Binance and Coinbase. Still, Cardano’s developers Input Output and community members have disputed this classification. The asset has also been recognized as a commodity in Indonesia.
If ADA’s classification as a security is upheld, the asset will only be available for trading on accredited securities exchanges. With the regulatory climate in the U.S. shrouded in uncertainty, it remains to be seen whether this would be the case.
There is no precise statistic identifying popularly traded assets in Hong Kong. But judging by data from CoinEx, a popular Hong Kong exchange, the most traded asset is likely Bitcoin.
News that an exchange plans to delist an asset can spark temporary dips in price. However, whether the asset recovers depends on the circumstances surrounding the delisting.
