On January 3, crypto-friendly brokerage company eToro USA will stop XRP trading.
The ruling came in light of the latest litigation brought by the SEC against Ripple. Customers of eToro U.S. have until January 24 to move their XRP holdings.
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They can either keep or move their XRP to an eToro wallet after that date at any time. Customers may also move XRP from their eToro wallets to any external wallet address.
The delisting will affect only U.S. customers of eToro and not global customers.
After the SEC lawsuit, crypto exchange sites, including Coinbase and Binance.US, have started to disassociate themselves from XRP. Coinbase was slapped with a class-action complaint yesterday for profiting from XRP. The plaintiff argued that despite recognizing that it was a security, Coinbase encouraged trading XRP.
The SEC treats XRP as a security and alleges that an ongoing unregistered stock sale of XRP, Ripple and two of its leaders, CEO Brad Garlinghouse and co-founder Chris Larsen, have earned billions of dollars for the company. On 22 February, all parties are expected to dial-in for an initial pre-trial session.
eToro’s official statement on XRP is as follows:
Given the U.S. Securities and Exchange Commission’s (SEC) recent lawsuit against Ripple Labs, Inc., eToro USA LLC (eToro) has decided to prohibit purchases of XRP on the eToro platform and to prohibit any conversion of XRP held in a customer’s eToro Wallet beginning on January 3 at 12pm Eastern Standard Time. Customers with existing XRP positions will have until January 24 at 12pm Eastern Standard Time to close such positions by entering sell orders on the eToro platform. eToro reserves the right to suspend any services at any time, including earlier than January 3 at 12pm Eastern Standard Time, if we determine that market, regulatory, or other conditions warrant such action.
For now, the above prohibitions affect only US customers and will not affect any customer’s ability to hold XRP in the eToro Wallet. All customers, including US customers, may continue to hold XRP in their eToro Wallet, and those customers still holding XRP on the eToro platform after January 24th can transfer their XRP to an eToro Wallet at any time. Additionally, customers holding XRP in the eToro Wallet may also transfer their XRP to any XRP wallet address unaffiliated with eToro at any time.
We will continue to monitor this situation for new developments and, should the need arise, share additional information regarding XRP through both this blog and the eToro US Twitter account.
What is eToro?
eToro is an Israeli multi-asset brokerage and social exchange business focused on offering financial and cryptocurrency trading services. It has licensed offices in the United Kingdom, the United States, Cyprus, Israel, and Australia. The value of the corporation was $800 million in 2018.
The principal R&D office of eToro is based in Tel Aviv, Israel. Apart from the legal bodies registered in the United Kingdom, China, the United States, Australia and Cyprus. In the EU, eToro is governed by the CySEC body. It is approved in the UK by the FCA, and in the United States by FinCEN, and in Australia by the ASIC.