Following the U.S. Securities and Exchange Commission's (SEC) legal action against Ripple, cryptocurrency exchange OKCoin announced on Monday that it will suspend XRP trading and deposits starting January 4, 2021.
In a blog post published today, OKCoin stated that its "best course of action" in response to the SEC's lawsuit is to halt XRP trading and deposits.
Key Details of the Suspension
The exchange outlined the suspension timeline:
- Borrowed XRP/USD: Users must repay borrowed amounts by January 3, 2021, at 7:00 PM PST. Delays will trigger automatic liquidation.
- Full Suspension: Spot trading, margin trading, and deposits will pause on January 4, 2021, at 7:00 PM PST until further notice.
Background: SEC vs. Ripple
The SEC charged Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen on December 22, alleging an "unregistered, ongoing digital asset securities offering" through XRP token sales since 2013.
Garlinghouse criticized the SEC for "attacking cryptocurrency" and hindering U.S. innovation.
Market Impact
Since the SEC's announcement:
- XRP’s price dropped over 36%.
- Exchanges like OSL, Beaxy, and CrossTower have halted XRP trading.
- BitStamp will suspend XRP trading only for U.S. customers.
👉 Explore how major exchanges are responding to regulatory changes.
FAQs
Q: Why is OKCoin suspending XRP?
A: Due to the SEC’s lawsuit against Ripple, OKCoin deemed suspension necessary to comply with regulatory risks.
Q: Can I withdraw XRP after January 4?
A: Withdrawals remain available unless otherwise notified.
Q: Will other exchanges delist XRP?
A: Some already have (e.g., BitStamp for U.S. users), while others monitor the situation.
Industry Reactions
- Investor Concerns: Uncertainty around XRP’s classification as a security fuels market volatility.
- Legal Precedent: The case could shape how regulators treat similar cryptocurrencies.
👉 Stay updated on crypto regulations.
Disclaimer: This content is for informational purposes only and does not constitute financial advice.