Hong Kong Trading Platform OSL Suspends XRP Services as SEC Sues Ripple

A lawsuit against Ripple Labs brought Tuesday by the U.S. Securities and Exchange Commission (SEC) is already having knock-on effects.

  • OSL, the first regulated digital asset trading and brokerage platform in Hong Kong, announced that it is suspending trading in the XRP cryptocurrency at the heart of the SEC action.
  • The platform tweeted Wednesday:
  • The SEC is accusing Ripple of violating federal securities laws via sales of XRP to retail consumers.
  • Ripple is said to have raised $1.3 billion over a seven-year period in ongoing sales of XRP to retail investors.
  • According to CoinDesk’s report, one U.SS. exchange opted to delist the cryptocurrency ahead of the lawsuit’s filing.
  • In its WhatsApp group, OSL said “the irony is our [Securities and Futures Commission] licensed entity ‘OSL Digital Securities’ will likely be permitted to trade XRP (if it’s now deemed a security).”
  • The SFC license, it said, covers cryptocurrencies like bitcoin, as well as security tokens, adding “XRP might now fall into the latter.”

See also: An SEC Victory in Ripple Case Would Render XRP ‘Untradeable,’ Market Pros Say

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