- Bitstamp announces that it would stop XRP trading by next year
- This is due to the lawsuit filed by the SEC against Ripples
Popular crypto exchange firm, Bitstamp, has declared that the exchange firm was going to be suspending all trades pertaining to Ripple’s XRP. With this announcement, the crypto firm joins a growing list of crypto exchanges that have made attempts at putting a stop to trading XRP on their platforms.
According to the announcement made by Bitstamp, customers in the United States would no longer be able to trade the crypto asset through their exchange. The firm cited the recent lawsuit filed by the SEC against Ripples as the reason for its suspension.
The SEC has alleged that XRP is a security and that Ripples had failed to receive the necessary authorization before proceeding to make their native token public.
Bitstamp has alluded that the above reason is why it would stop offering XRP to its customers from January 8, 2021. The firm has also announced that it would keep following the situation closely and would continue to adapt to the surrounding circumstances.
The announcement by the exchange firm has led to the price of XRP plunging by 12% immediately after it was released. The coin had rebounded from its earlier dip when the initial SEC announcement was made.
Bitstamp is first major crypto exchange to halt XRP services
Bitstamp, founded in 2011, appears to be the first major crypto exchange firm, based in the United States, to decide to stop providing its services for XRP due to its ongoing face-off with the authorities.
The Luxembourg based company allows users to exchange Bitcoin, Ethereum, Litecoin, and Bitcoin cash, with each other and also against fiat currencies like the US Dollar, Euros and the British Pounds.
The firm is also one of the crypto firms that allows their users to deposit and withdraw fiat currencies using their credit or debit cards.