Crypto Exchanges Start to Delist XRP to Avoid Legal Troubles

As the US securities market regulator officially moved against Ripple, crypto exchanges have started to delist the XRP token to save themselves from any legal troubles. OSL, CrossTower and Beaxy are three known digital currency trading platforms to delist the troubled cryptocurrency.

The delisting started hours after the announcement of the Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission’s lawsuit against Ripple; the company’s executive chairman, Chris Larsen and Brad Garlinghouse, its current CEO.

The market watchdog is alleging the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term company of selling unregistered securities to investors and illegally raising $1.3 billion since 2013.

Will Major Exchanges Delist XRP Too?

The delisting did not come as a surprise as many industry proponents pointed out and justified such moves by crypto exchanges.

I just read the 71 page SEC complaint vs. Ripple.

I think any crypto exchange who doesn’t delist XRP this week is out of their mind. If the SEC says it’s a security you’d be crazy to list it without a license. — Bruce Fenton (@brucefenton) December 23, 2020

Though Hong Kong-based OSL was the first to delist the controversial cryptocurrency after the announcement of the lawsuit, CrossTower was proactive enough to delist XRP even before the official confirmation.

“Given the uncertainty regarding XRP’s status, CrossTower has decided to delist XRP,” CrossTower President, Kristin Boggiano, said in a statement.

OSL and Beaxy both tweeted about their suspension of XRP trading, and the decision will be effective “until further notice.”

Please note: In light of US Securities & Exchange Commission’s enforcement action against Ripple Labs & 2 of its executives, we have suspended all #XRP payment in and trading services on the OSL platform, effective immediately and until further notice.https://t.co/EXJJEHMawn

— OSL (@osldotcom) December 23, 2020

The SEC has charged @Ripple with conducting an unregistered security sale.

Due to this, #Beaxy has halted trading for XRP pending further news. $XRP withdrawals will remain enabled until further notice. pic.twitter.com/lVVqXJPdPP — Beaxy Exchange (@BeaxyExchange) December 22, 2020

However, major exchanges are yet to react to the lawsuit against Ripple.

Meanwhile, the news of the lawsuit is affecting the market performance of XRP. The token almost lost 30 percent in the last 24 hours and is trading at $0.337 apiece as of press time. Furthermore, Tether took over Ripple as the third-largest cryptocurrency, in terms of market cap.