- Kraken will suspend the trade of XRP by the end of this month
- The suspension of the token’s trade will not affect the plans for Spark token airdrop
- After the filing of a lawsuit, several exchanges had already taken actions regarding XRP
- The advocates of the token are not taking the lawsuit lightly
Kraken, a major cryptocurrency exchange based in the United States, has also come in the same path following other major exchanges and halted the trade of XRP. The exchange officially announced that following the lawsuit filed against Ripple, the exchange is taking such steps. In the announcement, it was also found that the suspension is only for the users of the United States, as the rest of the users from elsewhere will be unaffected.
When will Kraken execute the suspension?
According to Kraken, the suspension of trading will get into effect at 1:00 am UTC on 30th January. After the halt, the exchange has also mentioned that the users will still be able to deposit, hold, and withdraw their XRP funds. The US users with the token’s spot positions on margin will have to satisfy all outstanding margin obligations before 28th January. If the users fail to do so, then their positions will get liquidated according to specific terms.
On the other hand, it is also known that the halt will not affect the plans of the exchange regarding the Spark token airdrop. However, the exchange is monitoring the scenario and will adapt likewise with new developments.
Many other exchanges have already taken such steps
In December, the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple and two of its officers regarding its native token XRP. The primary legal fight is to clarify whether the token is a utility token or unregistered securities. However, after the filed lawsuit, we observed that the token lost its value significantly. And it was figured out that the main reason behind the tokens losing their price level is the delisting and suspension of its trade from many crypto exchanges. Several major digital asset exchanges like Coinbase, Bittrex, and eToro also took further steps regarding XRP. However, now the latest exchange is Kraken, which will also halt US clients’ trade by the end of this year.
Advocates of XRP are fighting along with the firm
Several advocates of the token and the XRP community members have raised their voices against the regulatory body. The community members have introduced a petition so that the government could recognize the token as currency instead of securities. A Europe based exchange, Gatehub, has also denied to delist or halt the trade of the token till the judgment clarifies it as unregistered securities. According to Brad Garlinghouse, Ripple’s CEO, the firm might migrate to the United Kingdom to gain regulatory clarity.