OKCoin Will Suspend XRP Activity Due to SEC Charges

Key Takeaways

  • OKCoin will suspend XRP trading and deposits on Jan. 4, 2021.
  • The decision is due to the U.S. SEC’s lawsuit against Ripple.
  • The suspension on trading may or may not be permanent.

OKCoin has announced it will suspend trading and deposits of XRP on its exchange beginning on Jan. 4, 2021.

SEC Lawsuit Causes Suspension

On Dec. 22, 2020, the U.S. Securities and Exchange Commission published details about a lawsuit, in which it alleges that Ripple’s sales of XRP constitute unregistered securities offerings.

OKCoin cited the SEC’s lawsuit against Ripple behind its decision to suspend trading.  “As the lawsuit proceedings take place, we have determined it is the best course of action to suspend XRP trading and deposits on OKCoin effective Jan. 4, 2021,” OKCoin stated in its announcement.

Though OKCoin has not stated when (if ever) it will re-enable XRP trading, the decision may not be permanent.  “It is likely that this situation will take time to reach a resolution,” the company’s announcement states. “We will proactively inform our customers when we have information that may change our position.”

OKCoin is not the only exchange to suspend XRP trading. Several exchanges have either suspended trading or delisted the coin, including Bitstamp, CrossTower, Beaxy, B2C2, and OSL.

What Investors Should Know

Beginning at 7:00 PM PST on Jan. 4, 2021, OKCoin will suspend XRP, spot trading, XRP margin trading, and XRP deposits until further notification.

OKCoin has also instructed investors who have XRP/USD margin positions open to return the borrowed value before 7:000 PM PST on Jan. 3. If users do not close the margin trade themselves, OKCoin will automatically liquidate the trade and close the loan contract.

OKCoin previously supported spot and margin trading of XRP/USD pair, and experienced trading 24 hour volumes of about $100,000 according to Coin Gecko.

Users of OKEx, a related exchange, will not be affected by the decision.

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