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 “attainable limitations” attributable to “challenges” within the platform’s skill to help purchase orders.
The corporate stated they could impose limitations on clients seeking to buy cryptocurrency property attributable to issues arising from a scarcity of market liquidity.
The brokerage could set a short lived most publicity quantity per cryptocurrency asset per consumer, in addition to quickly suspending the power to position new purchase orders, in response to a copy of the letter posted on-line.
Spreads on cryptocurrency property can also be wider than typical ensuing from “unprecedented situations out there” as demand surges from newcomers for digital property.
Customers on the platform have skyrocketed in recent weeks, with eToro opening 380,000 new accounts. Its cryptocurrency buying and selling quantity is 25 occasions greater than January 2020, per Bloomberg’s reporting.
The disruption to providers has additionally filtered over to merchants relating to leveraged cryptocurrency positions who referred to as foul on Sunday when their positions had been abruptly closed attributable to “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.