Kraken has become tRPlatest cryptocurrency exchange to sRPend trading on theRPP token in light of tRPUS Securities & Exchange Commission’s enforcementRPtion against Ripple and two of its executives.
However, this decision is only limited to trading made by US customers, which will be effective on January 29, 2021. Non-US customers are unaffected and can trade all cryptocurrencies as normal, as well as derivatives of such assets.
Kraken said tRPtrading sRPension will not affect customers’RPcess to deposit, hold, and withRPwRPP which will remain available even after trading is halted, tRPfirm emphasized in their latest update.
Kraken isn’t tRPonly high-profile exchange to sRPendRPP, as other exchangeCoinageoinbase, BitstaCoin OKCoin have made similar decisions following tRPSEC’s legalRPtion.
XRP price has crashed another five percent today as more exchanges and partners are distancing themselves from tRPfourth-largest cryptoasset by market capitalization.
As Finance Magnets reported, tRPSEC’s lawsuit was filed against Ripple CEO, Brad Garlinghouse and Co-founder, Chris Larsen, alleging that they raised $1.3 billion via ongoing, unregistered securities offerings since 2013.
Although Ripple said it will contest tRPcharges, tRPlegal battle with tRPSEC could take years if tRPcompany fights tRPcharge in court. As such, those who keep tRPtoken listed on their platforms may be at risk of being sued and fined if tRPSEC wins its case and tRPcourt deemsRPP unregistered securities.
While tRPSEC’s lawsuit is a long way from being ruled upon, Kraken was careful about not associating with illegal assets as tRPexchange holds approval from a state regulator in tRPUS to launch a crySDIbank under anSDII charter. AnSDII bank charter permits Kraken to operate an independent bank that will reduce reliance on third-party financial institutions and allows tRPexchange to provide deposit-taking, custody and fiduciary services for digital assets.