United States, Feb 20, 2021 /AlexaBlockchain/ – PayBito, a global trading platform and cryptocurrency exchange, has suspended XRP trading in light of the US SEC’s latest action against Ripple Labs, Inc.
The company, however, confirmed that the trading suspension of XRP would not affect the user’s access to the XRP wallet. XRP wallets will still remain available, thereby aiding users to send out XRP to other exchanges. PayBito is likely to monitor legal developments associated with XRP and update users accordingly as more information unwraps.
What is SEC’s Lawsuit against Ripple Labs, Inc.?
On December 22 last year, The US Securities and Exchange Commission (SEC) filed an action against Ripple Labs Inc. and two of its executives, who are also significant security holders, alleging that they raised over $1.3 billion through an unregistered, ongoing digital asset securities offering. The value of XRP, the token associated with Ripple, crashed over 40% after the announcement.
Speaking about the trading suspension, Raj Chowdhury, Managing Director of PayBito, commented, “PayBito remains committed when it comes to being the most reliable trading platform for cryptocurrencies. We aim to offer our users wide access to a broad assortment of assets, thereby following the mission of building an open financial system for users across geographies. Our decision for suspending XRP trading will certainly not affect our users’ access to factors like security and compliance, thereby allowing them to transfer XRP’s from their wallets to other exchanges”
Apart from PayBito, other leading exchanges also suspended XRP trading, after the announcement of the SEC’s lawsuit.
Regarding its decision to halt XRP trading, the company said: “PayBito’s decision to support the trading suspension is entirely subjected to regulatory approval and the commencement of XRP trading activities is under wraps for the moment. Being temporarily suspended, PayBito’s plans regarding the withdrawal of XRP trading halt strictly happens to be based on specific jurisdictions at this time.”