In line with Wallebi, the United States Security and Exchange Commission (SEC) sued Ripple due to selling unlicensed securities in the form of XRP. As a result, the price of XRP declined dramatically. In fact, many traders and investors began to sell their XRP tokens and bought other altcoins as well as Bitcoin. This situation had a significant impact on XRP and nobody knows what would happen in the future to the 4th most powerful cryptocurrency. Last up-to-date information shows OKCoin would take action against XRP by suspending XRP trading and deposits.
OKCoin suspends XRP deposits and trading
OKCoin exchange believes that the issue between SEC and Ripple will take long time to be resolved. This exchange announced recently that it would suspend XRP deposits and trading due to the latest legal action, which SEC took against Ripple.
OKCoin released a blog post today and announced that this exchange believes it was the best action took against Ripple. According to this announcement, OKCoin will suspend deposits and trading of XRP over two days. Consequently, all the users, who borrowed XRP/USD through OKCoin must return the borrowed value to this exchange before Jan. 3. Meanwhile, OKCoin will suspend spot trading, deposits and margin trading for XRP.
Actually, OKCoin believes that this situation will take long time until Ripple can resolve it. This exchange announced on its weblog that they will inform their customers in case they changed their position.
SEC sued Ripple, the firm responded
OKCoin exchange took the recent position due to the latest SEC action against Ripple and the Brad Garlinghouse, CEO, and Chris Larsen, Co-founder response on Dec. 22. In fact, SEC alleges that Ripple and its executives involved in an “unlicensed, ongoing digital asset securities offering” to investors through selling the XRP tokens since 2013. Garlinghouse took action to the current situation and stated that SEC intended to attack crypto. He believes that SEC is acting against developing technology and innovation in the United States.
OKCoin would take action against XRP; Impact of current situation on XRP price
Since SEC spread the news of the current situation, XRP price declined over 36%. In addition, many exchanges suspend XRP trading and deposits and no longer provides service for Ripple users.