OKCoin Halts XRP, Requires Merchants to Return Margin Loans

Photograph: FM

OKCoin has turn into the newest cryptocurrency alternate to droop buying and selling on the XRP token in gentle of the US Securities & Change Fee’s enforcement motion in opposition to Ripple and two of its executives.

XRP worth has crashed one other 4 p.c at present as extra exchanges and companions are distancing themselves from the fourth-largest cryptoasset by market capitalization. The newest instance was earlier at present when cryptocurrency market maker, B2C2 paused XRP buying and selling with its US counterpart platforms.

Main European platform, Bitstamp was the primary main alternate to droop XRP transactions efficient 8 January 2021. Nonetheless, that is solely restricted to deposits and buying and selling made by US prospects as international Bitstamp prospects should not affected and might commerce as regular.

In an replace on Monday, OKCoin stated it’s halting XRP help efficient January 4, the place spot buying and selling, margin buying and selling and deposits can be suspended until additional discover.

Lawsuit Leads Extra Exchanges to Droop XRP

The brand new restrictions apply to all shoppers and customers who borrowed margin to juice up their bets on the XRP/USD pair, both in fiat or crypto. They’re required to return the borrowed funds earlier than January 3. Delays will set off a liquidation by OKCoin techniques to shut the mortgage contracts, the alternate stated.

“Because the lawsuit proceedings happen, we’ve decided it’s the finest plan of action to droop XRP buying and selling and deposits on OKCoin. It’s seemingly that this example will take time to succeed in a decision. We’ll proactively inform our prospects when we’ve data which will change our place,” OKCoin assertion additional reads.

Earlier than Bitstamp’s motion on Friday, the transfer to delist XRP was restricted to small buying and selling platforms, but main exchanges don’t have any different selection however to observe swimsuit. In any other case, those that hold the token listed on their platforms could also be prone to being sued and fined if the SEC wins its case and the court docket deems XRP unregistered securities.

As Finance Magnets reported, the SEC’s lawsuit was filed in opposition to Ripple CEO, Brad Garlinghouse and Co-founder, Chris Larsen, alleging that they raised $1.3 billion by way of ongoing, unregistered securities choices since 2013.

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