OKCoin is the latest cryptocurrency exchange that has suspended trading on the XRP token due to the US Securities & Exchange Commission’s enforcement action against Ripple, and two of its executives.
The XRP price crashed four percent more today as partners and exchanges distance themselves from the fourth largest cryptoasset in terms of market capitalization. Today’s most recent example is when B2C2 , the cryptocurrency market maker halted trading of XRP with its US counterpart platforms.
Bitstamp, a leading European platform, was the first to suspend XRP transactions effective January 8, 2021. This is not applicable to US customers, as all Bitstamp global customers can trade as usual.
OKCoin updated Monday to say that it will stop XRP support effective January 4. Spot trading, margin trading, and deposits will all be suspended until further notice.
Lawsuit leads to more exchanges to suspend XRP
All clients and users who borrowed margin in crypto or fiat to boost their bets on XRP/USD will now be subject to the new restrictions. They must return any borrowed funds by January 3. The exchange stated that any delay will result in OKCoin systems liquidating the loan contracts to close them.
“As we watch the litigation proceedings, we decided it was the best course to suspend XRP trading as well as deposits on OKCoin. This situation is unlikely to be resolved quickly. “We will inform our customers whenever we have information that could change our position,” the OKCoin statement continues.
Bitstamp’s Friday action was the first to delist XRP. However, major exchanges are forced to follow their lead. If the SEC wins and the court declares XRP unregistered securities, then those who maintain the token on their platforms could be sued and fined.
Finance Magnets reported that the SEC filed a lawsuit against Ripple CEO Brad Garlinghouse, and Chris Larsen, Co-founder. They claim they raised $1.3 Billion through unregistered securities sales since 2013.