New problems surface for Ripple as Kraken exchange delists it for American clients. Several exchanges already delisted the digital asset, but Kraken is one of the latest to announce its delisting. Since the lawsuit problems happen, Coinbase was the first to separate itself from the firm coupled with XRP removal on the trading platform.
Late last year, SEC, a US body, alleged that Ripple’s CEO and another co-founder deliberately sold unregistered XRP offerings to investors. The regulatory body continued by mentioning that XRP was a security and the Fintech company has to register it. The Ripple team announced that as a cryptocurrency, XRP doesn’t need approval. The back and forth came with a legal summon for Ripple by February linked to the unregistered tokens’ issues.
Delisting will start in late January
The company revealed that the official delisting would happen by late January. The crypto exchange explained that only US users could not trade the crypto when the removal becomes effective. Holders from other countries will face no restrictions in XRP readings, despite the US government’s claims. Businesses know the US for its strict measures, making it hard for some firms to take a stance in the North American country. People outside the country can continue with its use, according to the exchange.
Also, US users can still hold and withdraw their holdings even when the delisting takes effect. Kraken’s approach to the legal battle is lenient compared to other exchanges that completely removed the cryptocurrency’s functioning from their platform. The smaller volumes coming in for the asset caused a continuous price drop that worries investors.
Even the firm’s former CTO and co-founder discontinued selling his XRP holdings that people know him. The only thing the US market cannot do with the crypto is to trade. Kraken will not allow trading from that region with the crypto because of its problems with authorities in America.
XRP’s continuous drop
Major exchanges have disallowed this asset’s use, some of which are Bitstamp and OKCoin, so Kraken’s announcement concerning XRPs did not shock the space. Still, statements like this discourage new investors from putting their money into the asset. With lesser volumes coming in and traders refusing to buy the asset, experts expect more price crashes from the prominent crypto. XRP, mainly used for cross-border payments, might exit the American market after its legal battles.
The Ripple team is taking steps to expand dominance in other regions, showing that an exit might happen. Holders are also at risk and might face legal battles even if the Ripple executives lose the case. Companies are shying away from being linked as associates of the illegal sales, hence the numerous dissociation by other crypto-related firms.
Even its long-term payment partner, MoneyGram, explained its position with the Ripple team, and it disassociated its partnership from the illegal offering claims which SEC raised. Nevertheless, the fintech company might explore its European market to gain its reputation in the industry.