Ripple and the litigation: Kraken crypto exchange pulls the rip cord
Should the SEC prevail against Ripple with its accusation, this would be the worst case scenario for many XRP holders. In the run-up to the decision, the Kraken crypto exchange is now taking precautionary measures.
As BTC-ECHO reported several times in the past , the crypto platform Ripple is facing considerable allegations from the US Securities and Exchange Commission
It is said that Ripple’s IPO was illegal because it is a security and not a cryptocurrency. This dispute now has consequences for the users of the Kraken trading platform. According to media reports, US-based Kraken customers will soon no longer be able to trade XRP. This restriction should apply from January 29th. Kraken made this clear in a statement published on Friday .
It also states that it will still be possible to deposit, hold and withdraw XRP at Kraken. Customers residing in countries other than the USA are also likely not to be affected.
We are monitoring the situation regarding filing with the SEC and will adapt accordingly to new developments.
So it says in the message. There is an FAQ section on the Kraken website that provides ongoing updates on the planned measures.
Several exchanges are suspending ripple trading
The SEC made its allegations against Ripple public in December. The US Securities and Exchange Commission claims that the sale of XRP constitutes an improperly registered offering of securities. Since the regulator filed the lawsuit, a number of crypto platforms have suspended XRP trading. These include OKCoin, Coinbase, Bittrex, Genesis, Binance.US and eToro.
Nonetheless, Ripple does not fall into shock in the face of the legal dispute. So this day was published a job advertisement in the company for a new director of engineering on the lookout. He is supposed to lead the team that is building the open source developer services for its payment platform RippleX. In addition, Ripple recently drew attention to itself through expansion efforts.
On January 15, the company signed a contract with a Malaysian money transfer provider and Bangladesh’s largest provider of mobile financial services. The aim is to set up a transfer corridor between the two countries. Mobile Money in Malaysia and bKash in Bangladesh will use Ripple’s global payment network, RippleNet, for wallet-to-wallet transactions. A change at the top of the SEC is also coming soon . To what extent this will have an impact on the further course of action of the US authority with regard to Ripple cannot be foreseen at the moment.