Bitstamp suspended XRP transactions for Europeans

  • Bitstamp as the first major crypto exchange to delist the trade of Ripple’s XRP
  • The decision for deleting the token came after the US SEC filed a lawsuit against the CEO and co-Founder of Ripple
  • XRP has continued to lose its position since after the news
  • Other crypto exchanges across the world are also worried about the token after the lawsuit filed by SEC

Bitstamp, being one of the largest European cryptocurrency exchange platforms, has become the first major digital assets exchange to suspend XRP transactions for the European users. According to the data from CoinMarketCap, it is known that the native token of one of the world’s largest fintech firms, Ripple, is the fourth largest crypto token by market capitalization. However, the XRP token is now suffering critical days due to lack of regulatory clarity.

The harsh decision of Bitstamp came after the action of US SEC

On Friday, Bitstamp announced, to halt all trading and deposits of XRP token, effective 8th January, next year. However, it is known that the announcement was released mentioning that the exchange decided the United States Securities and Exchange Commission filed a $1.3 billion lawsuit enforcement action against the token and two of its executives. Still, it is known that the users from the United States and other countries except Europe will be able to withdraw the token any time. Indeed, customers from other countries are not affected.

Effect of the news on the XRP token

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Despite the news of suspending the transaction, the price of XRP surged an intraday high at the level near $0.37, which is a surge by 9% on the day. Although the price of XRP surged, it lost its market capitalization by $10 billion. Observing the data from CoinMarketCap, it is found that XRP was the third-largest crypto-token, but after the exchange’s started to halt or suspend the transactions related to the token, the token gave its position to USDT and became the fourth largest crypto token by market capitalization. Notably, last month 40 million XRP was moved to Bitstamp from an unknown wallet address, which seems to have also contributed to the exchange’s decision.

Several small trading platforms are also delisting XRP

Before the delisting of news from Bitstamp, it was observed that several other major crypto exchanges have delisted the token. However, observing the current scenario it seems like other major crypto exchanges across the world now have no other choice other than following the SEC. This is because if any exchange keeps the token listed then it will have to pay the fine if the court remarks XRP as the unregistered security.

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Ahtesham Anis
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.

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