Bitstamp is one of the most popular crypto platforms in Europe and has decided to stop XRP transactions. The popular platform will stop all trading and deposits of cryptocurrency XRP for US customers effective January 8, 2021.
Bitstamp made the announcement on Friday. It said that the company had taken the decision due to the US Securities & Exchange Commission’s enforcement action against Ripple, and two of its executives.
However, Bitstamp customers in the US will still be able withdraw their XRP at any time. Customers from other countries won’t be affected.
Additionally, the move is noteworthy as 40 million XRP, valued at roughly $30 million at the transaction’s date, was moved last month from an unknown wallet address to Bitstamp.
Despite this news, XRP is still up 9% and trading at $0.29 as of the writing. The altcoin’s market value has plummeted to $10 billion as many exchanges pulled out or stopped transactions following the SEC’s $1.3 billion lawsuit against Ripple.
According to CoinMarketCap, XRP has retained its position as the 3rd largest crypto by its market capitalization, behind Bitcoin and Ethereum, after sliding down earlier to fourth place.
Top Exchanges and Other Companies in Wait-and-See
Prior to Bitstamp’s actions, XRP delisting was only possible for small trading platforms. 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 Brad Garlinghouse, CEO, and Chris Larsen, Co-founder. They claim they raised $1.3 Billion through unregistered securities sales since 2013.
Ripple is often grouped with other cryptocurrency, but its purpose is distinct. It operates a fast and scalable decentralized payment settlement system for financial institutions and banks that is both fast and scalable.
Ripple is developing several blockchain-based solutions that enable cross-border money transactions between banks in a faster and cheaper way than the current systems allow.
Ripple’s product is already being used by some of the most important US banks and other large remittance firms.