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One More Major Exchange to Suspend XRP Trading

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Mon, 12/28/2020 - 19:35
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Alex Dovbnya
Another major exchange will halt XRP trading next month
One More Major Exchange to Suspend XRP Trading
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OKCoin, one of the oldest cryptocurrency exchanges, is slated to suspend XRP trading as well as deposits on Jan. 4, 2021, due to a sweeping SEC lawsuit against Ripple, according to a Dec. 28 announcement:

We have been closely monitoring the news surrounding the December 22nd SEC lawsuit against Ripple, the company behind XRP, and two of its key executives. As the lawsuit proceedings take place, we have determined it is the best course of action to suspend XRP trading and deposits on OKCoin effective January 4, 2021.

Margin traders will have to return borrowed XRP tokens before 7:00 PM PST, Jan 3, 2021 (03:00 UTC, Jan. 4, 2021). Otherwise, their positions will get liquidated. 

The exchange says that the suspension will be in effect until further notice:

We will proactively inform our customers when we have information that may change our position.

The SEC alleges that XRP, the fourth-largest cryptocurrency, is an unregistered security. Multiple exchanges, including Bitstamp, have moved to drop the token over the past few days. 

XRP dipped six percent on the OKCoin announcement before paring some losses.  

XRP
 Image by tradingview.com

Related
Ripple Losing Customers Because of XRP, Brad Garlinghouse Says

OKCoin to start trading Blockstack’s token

Earlier this December, OKCoin became the very first U.S. exchange to list Blockstack’s STX token.

In its statement, the exchange claimed that STX had successfully transitioned into a “utility token”:

After our compliance team carefully reviewed the Blockstack statement of decentralization and the PoX mechanism, we’ve concluded it has successfully transitioned from a security to a utility token, and thus OKCoin can and make STX available to U.S. users for the first time.

In July 2019, Blockstack obtained landmark approval from the SEC that allowed it to hold the very first regulated sale of tokens.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.