Multi-asset brokerage eToro has issued a warning to customers seeking to purchase bitcoin and different cryptocurrencies over the approaching weekend.
In response to an e-mail despatched to clients and as reported by Bloomberg on Wednesday, the Israel-based firm stated clients may face “doable limitations” as a result of “challenges” within the platform’s skill to help purchase orders.
The corporate stated they might impose limitations on clients seeking to buy cryptocurrency property as a result of issues arising from an absence of market liquidity.
The brokerage could set a short lived most publicity quantity per cryptocurrency asset per consumer, in addition to briefly suspending the power to position new purchase orders, based on a copy of the letter posted on-line.
Spreads on cryptocurrency property may be wider than standard ensuing from “unprecedented situations available in the market” as demand surges from newcomers for digital property.
Customers on the platform have skyrocketed in latest weeks, with eToro opening 380,000 new accounts. Its cryptocurrency buying and selling quantity is 25 instances increased than January 2020, per Bloomberg’s reporting.
The disruption to companies has additionally filtered over to merchants relating to leveraged cryptocurrency positions who referred to as foul on Sunday when their positions have been abruptly closed as a result of “excessive market volatility.”
As such, clients at the moment are being warned that the brokerage platform could make additional modifications to their cryptocurrency choices “at very brief discover.”
CoinDesk reached out to eToro, however didn’t get a response by press time.