Crypto Buyers Face ‘Possible Limitations’ on eToro This Weekend

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Multi-asset brokerage eToro has warned users looking to buy Bitcoin and other cryptocurrencies this coming weekend.

According to an email to customers reported by Bloomberg on Wednesday, the Israel-based company could face “potential restrictions” due to “challenges” in supporting the platform for purchase orders.

The company said restrictions may be placed on customers looking to buy cryptocurrency assets due to complications resulting from a lack of market liquidity.

The broker can set a temporary maximum exposure amount per cryptocurrency asset per customer and temporarily suspend the ability to place new purchase orders according to a copy of the letter posted online.

Spreads on cryptocurrency assets can also be wider than usual due to “unprecedented market conditions” as new entrant demand for digital assets increases.

The platform’s users have skyrocketed in the past few weeks and eToro has opened 380,000 new accounts. According to the Bloomberg report, the trading volume in cryptocurrencies is 25 times higher than in January 2020.

The interruption in services has also impacted traders on leveraged cryptocurrency positions, which were labeled a foul on Sunday when their positions were abruptly closed due to “extreme market volatility”.

As a result, customers are now being warned that the brokerage platform can make further changes to its cryptocurrency offerings on “very short notice”.

CoinDesk reached out to eToro but received no response at the time of going to press.